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Student loans, debt, tuition. All those things can be terrifying if you have a student getting ready to go to college. On this Money Monday, Nanette Graviet, VP of Public Relations with Mountain America Credit Union is telling about saving for college with the 529 plan.
The 529 Plan gives parents a tax-advantaged opportunity to save money for those future college costs. Utah offers the 529 program as an option for all ages. 529 plans, legally known as "qualified tuition plans," are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. In Utah, it's known as the Utah Educational Savings Plan, or UESP.
UESP is easy to open for your children, and there are low monthly fees, flexible plans, and tax incentives. But there are penalties if the money isn't used for higher education purposes. So make sure a 529 plan is the best option for your family.
A 529 plan isn't right for everyone. First, consider where you are at financially and whether saving specifically for college makes sense for you in comparison to other dreams like retirement savings, paying off existing debt, or becoming a homeowner. There are also other options to explore like Coverdell education savings accounts, savings bonds, securities, Uniform Gifts to Minors Act accounts and Uniform Transfers to Minors Act accounts, and more.
You can find out more information on this and many other financial questions by visiting macu.com
