life 101
saving
for college
Potential magazine has
found a few tried and true
methods of saving for
college, along with a few
creative ways to help you
and your child save.
#1
savings
& investments
529 Plans
529 Plans were created in 1996 to provide
tax benefits to families saving for
college. These plans invest in mutual
funds, stocks, bonds and money
market accounts. As long as the funds
are used for qualified educational
expenses, it is disbursed tax-free. You
are able to participate in the Alabama
529 Plan or in another state’s plan, so
have a qualified financial planner help you
understand the best plan for you. However,
one advantage to investing in the Alabama
CollegeCounts 529 Fund is that contributions
up to $5000 per contributor are deductible
when computing your Alabama taxable
income.
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