Bright Futures Start With 529 College Savings Plans.
State-sponsored 529 college savings plans are a tax-advantaged way to help you save for college expenses. You may be able to start a plan with as little as $15 and budget to contribute a per paycheck amount going forward. The younger your child is when you start saving, the more time you'll have to grow that money before he or she starts college.
529 plans also allow contributions from grandparents and friends, plus they can even grow when you make some everyday purchases. An Allstate personal financial representative can help answer questions you have about the different types of college savings plans available.
Understanding how a 529 college savings plan works can help you make a more informed decision about how you want to save money for a college education. The following provides a quick overview of what these plans offer:
- State-sponsored: 529 plans are state-sponsored programs that invest your money in various options to grow with interest. Since state taxes and options vary, we can help you weigh relevant home-state options along with out-of-state options.
- Professionally managed: Each state chooses an investment company to professionally manage its plans.
- Tax-advantaged: Your money grows tax free, meaning you don't pay tax on the interest it earns.1
- Flexible use: 529 plans are flexible and can remain under your control even after your child turns 18. The money you save can be used at most accredited colleges, universities or technical schools.
Still have questions or ready to get started with a 529 college savings plan? Talk to an Allstate personal financial representative today.