Celebrate College Savings Month highlights UA’s affordable and portable 529 plan
September is College Savings Month, a time for families to evaluate their college savings needs and goals and to take advantage of Alaska’s top-rated 529 offering, the UA College Savings Plan.
“It pays to start saving early,” said Myron Dosch, UA’s Chief Finance Officer. “Our family started saving for our children’s education when they were babies. Families that save small amounts earlier on may end up with more than if they had saved larger amounts later on.”
The UA College Savings Plan is a tax-advantaged way to save for future education expenses. It offers many benefits including a variety of investment options, several contribution methods, and portability. As a UA employee, you can conveniently save for higher education through payroll deduction.
Saving as little as $40 a month in a 529 Plan account can add up to about $15,000 over 18 years. Money saved in a 529 plan grows free from federal and state income tax, and withdrawals remain tax-free when used for qualified education-related expenses at any accredited higher education institution.
Our colleagues at the UA College Savings Plan have been busy this past year, making the Plan even better. Here are a few enhancements:
- Education Navigator, a comprehensive planning tool that helps plan participants know
if they’re on track with their savings goals. It provides personalized, age-specific,
education passports from birth to graduation, and information on financial aid, scholarships,
and grants.
- The GoTuition Gifting Portal, an online tool that makes it easy for you to ask friends and family to contribute
to your child’s college savings plan in lieu of gifts for traditional celebrations
like graduations, baby showers, and birthdays. It allows gift givers to conveniently
transfer funds to your account. (insert image of Lael’s portal)
- 529 accounts have become even more versatile. You are now permitted to take 529 college savings plan distributions of up to $10,000 per beneficiary per year for tuition at an elementary or secondary public, private, or religious school.
“Celebrate College Savings Plan Month by investing in a child’s future,” said Lael Oldmixon, director of Alaska’s 529 plan, the UA College Savings Plan. “Parents, grandparents, aunts and uncles can contribute to a 529 College Savings Plan as a one-time gift or ongoing contribution. Families that save small amounts earlier,may end up with more than if they had saved larger amounts later.”
Our colleagues at the UA College Savings Plan are here to help to make saving for educational expenses easy, and to help you make the most of your savings. Find out more at www.uacollegesavings.com or stop by their office at the Butrovich or Bragaw buildings. Happy College Savings Month!