CollegeCounts makes saving for your child’s college education easier than ever. Saving for college can feel like a daunting task, especially when you have a brand-new baby or young children who are a long way from going to college. And with rising tuition rates and new tax regulations, it’s hard to know how and when to get started.
The answer is: start small, and start early.
Alabama’s CollegeCounts 529 Fund is a 529-qualified tuition program providing flexible investment options designed to help build college savings. The program is simple, offers significant tax advantages, requires no minimum contribution, and allows easy-to-set-up automatic contributions. Funds can be used at 2- and 4-year colleges and universities nationwide, trade, technical and vocational schools as well as some foreign schools. In addition to paying for tuition and fees, CollegeCounts savings also pay for other college-related expenses that certain scholarships may not cover like books, supplies, required equipment for enrollment, and computers and certain software/ equipment. Room and board expenses are also included for students enrolled at least half-time.
It is easy to get started.
A monthly contribution of $10, $25, $50, or the amount that works for your budget can add up. A $50 monthly contribution over eighteen years—has the potential to build to over $19,000 at a 6% earnings rate. Adjusting what you save each year, adding birthday and holiday gifts from friends and family, and contributing more when you get a raise or pay off a car or student loan will help you accumulate additional dollars for college. Start saving right when a child is born, and that 18-year investment will help you reduce the amount of student loan debt your child will need to take on.
CollegeCounts allows not just parents but grandparents, family members, and friends to contribute to the fund. Alabama taxpayers can take advantage of generous state income tax deductions of up to $5,000 on contributions to CollegeCounts each year—$10,000 for married taxpayers filing jointly where both make contributions1. CollegeCounts also allows rollovers from out-of-state 529 programs. Rollover contributions are also eligible for the state income tax deduction up to the limits stated above.
It’s never too early to start saving and you can ensure the success of their future with CollegeCounts, a 529-qualified tuition program that provides flexible investment options specifically designed to help you build college savings.
CollegeCounts is with you every step of the way with answers to all of the questions you may have including:
- “How much money do I need to save?” Our College Savings Planner can help you figure out how much money you will need to save to best financially prepare your child for college
- “What are my options?”
We provide plenty of information on our three investment portfolios (Age-Based, Target, and Individual Fund) so you can decide which one is best for you
- “What are the benefits?”
Speak with a representative today to learn about the tax benefits, flexibility, and quality investment options that make CollegeCounts 529 one of the best ways to prepare for your child’s future college expenses