Have you ever heard of a 529 plan? If not, here is a basic definition: a savings account that aids families in putting money aside each month for a child's future education.
I live in Arizona and we have a great 529 plan! Here are some awesome facts about AZ529:
- Earnings aren't taxed
- AZ contributors get a tax incentive (annually up to $1500 for couples or $750 for individuals)
- The money doesn't have to be used at an AZ school
- Anyone can contribute to the account
So how do you get started?
You can download the free AZ college planner at az529.gov!
**While I was compensated for this post, these opinions are my own and I chose to participate in this campaign because I fully believe in 529 plans. Yes, Jesse and I are starting one for Ry Guy!
What a great idea, Britney! If you want to contribute more than the limit on your 529, you can also contribute to your IRA and withdrawals before 59 1/2 years old for education aren't penalized! Also, you can make your son work during the summer when he's older, and whatever he earns up to $3,000 can be invested to a Roth IRA, which won't be taxed upon investment (if he's under 18 and making under $5,000 or so), and it's not taxable upon withdrawal, and there's also no penalty for education purposes! AND AND AND, if your husband has his own firm, he can pay your son to work at the office, so he can take a deduction for the payroll expense!
ReplyDeleteAccounting is super fun!
This is an awesome thing to share. People need to be made more aware of these types of things!
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