College Savings Foundation

Not only is it important to encourage your child to discover, explore and dream, it is essential that parents are prepared for life beyond the nest – college. Below is a practical guide to help parents, family and friends plan and save for that special child in their life.

	Parents	Children	Family & Friends
Newborn – Pre K
Research and compare 529 programs online
Talk to your financial advisor about 529 college savings plan
Talk to your family and friends about what they’re doing to save for college
Use online calculators to help establish goals and create your personal college savings plan
Open a 529 college savings account
Sign up for a 529 affinity program and link it to your account (make sure that your state allows you to do this)
Encourage family members and friends to contribute to your child’s 529 account. “Give the Gift of Education” during celebrations and holidays
Check your personal plan on an annual basis
Establish an automatic contribution plan for a checking or savings account to make contributing easy
For 529 plans with a state income tax deduction or other incentive make sure you take full advantage of this extra benefit
Grade School
Consider the steps for a Newborn – Pre K but recognize that you have less time to save so you need to adjust goals or contribution amounts
Review your personal 529 college savings plan and savings amounts to ensure it is on track to meet your college savings goals. Make adjustments as necessary
Introduce your child to money and savings
Middle School
Consider the steps for a Newborn – Pre K but recognize that you have less time to save so you need to adjust goals or contribution amounts
Encourage family members and friends to contribute to your child’s 529 account as a gift
Involve your child in the savings process by sharing with them quarterly statements and savings plans
Establish a Matching Gift Program with your child. For every dollar they put into their 529 account match it with the same or more
Sign up for a 529 affinity program (if offered by your state’s program)
Increase contributions to your 529 college savings account
High School
Review your personal 529 college savings plan and savings amounts to ensure it is on track to meet your college savings goals. Make adjustments as necessary. Involve your child as schools of interest become clearer
Encourage family members and friends to contribute to your child’s 529 account as a gift
Involve your child in the savings process by sharing with them quarterly statements and savings plans
Increase contributions to your 529 college savings account
Attend financial aid workshops to learn about different ways to pay for college
Research and apply for scholarships on line and at your local community organizations, churches, etc
Attend a college fair and/or visit college campuses

Congress created 529 Education Savings Plans in 1996 under Section 529 of the Internal Revenue Code. They are state-sponsored, tax-advantaged vehicles for qualified post-secondary education expenses, such as tuition, fees, books, required supplies, equipment and room and board. There are two types of 529 Plans: savings plans, which allow families to save for expenses, and prepaid tuition programs, which generally allow families to make advance tuition payments to cover future attendance at a designated in-state public college or university system. Most states offer a 529 plan, and some states offer both savings and pre-paid plans.

A primary focus of CSF is building public awareness of and providing public policy support for 529 plans – an increasingly vital college-savings vehicle. CSF’s members include investment managers, broker-dealers, governmental bodies, law firms, accounting and consulting firms, and non-profit agencies that participate in the sponsorship or administration of 529 college savings plans.

College Savings Foundation
1300 Piccard Drive Suite LL14
Rockville, MD 20850
240.404.6478

Email: jdisanza@collegesavingsfoundation.org

PRESERVING, ENHANCING 529 PLANS
CSF’s key program goals are specifically focused on promotion, protection and enhancement of 529 plans.

A FORUM FOR DISCUSSION AND ACTION:
CSF brings together the industry and consumers on policy questions and provides a means for unified action on issues of concern to 529 plan investors and the industry. CSF provides a framework to assist with the orderly development of the programs and, in particular, acts as a resource for policymakers who share CSF’s objective of helping families realize their educational goals.

Tax Benefits

Investments grow on a tax-deferred basis, and earnings are free of federal income tax.
Contributions are eligible for gift tax exclusion as long as certain conditions are met.
Generally, account owners can remove contributions and future earnings from their taxable estate.
Certain 529 plans offer some type of state tax deduction when residents invest in their own state’s plan.

Flexibility

There are currently no income limits. Any U.S. resident or citizen, regardless of income, can open an account.
Account owners can withdraw money at anytime.
Funds may be used to pay qualified education expenses at any qualified educational institution in the U.S. (and some schools abroad), including any accredited public or private college or university, graduate school, two-year community or junior college and vocational and technical schools.
Eligible educational institutions include most U.S. schools and some schools located abroad. The institution must be eligible to participate in the U.S. Department of Education student aid programs. To determine if a school is an eligible education institution, search for its federal school code at www.fafsa.ed.gov.
Most plans offer low initial investments and a variety of investment options fitting various levels of risk and time horizons.

Control

The account owner decides when and how money in the account is withdrawn.
Account owners can change beneficiaries and investment options, according to IRS guidelines.

Start planning for your child’s future today!