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 plan 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 education costs through payroll deduction.
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. Distributions may also be used to pay for up to $10,000 per beneficiary per year for tuition at K-12 schools.
In addition to payroll deduction, account holders should check out these two tools that can help with the savings journey:
- 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 an account.
- 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.
“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.”
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 the office in the Butrovich or Bragaw buildings. Happy College Savings Month!