Are You Ready for Your Child to Go to College?
Time flies, and before you know it, your little ones will be heading off to college. Are you financially prepared for that day? Do you have a plan?
Saving for college is one of the most important things a parent can do to ensure a bright educational future for their children, but all too often that is easier said than done. Most people don’t know where to start or what their options are. However, Oasis PEO clients and worksite employees have an advantage–the CollegeBoundfund.
The CollegeBoundfund is a 529 college savings program, administered by AllianceBernstein, that is a tax-advantaged way for parents to save for their child’s education. This means that your investments in the account, earnings in the account and distributions for qualified education expenses are federal income tax-free. In addition, many states will allow the earnings in the account to be free of state income tax. (Because different states have different regulations regarding taxation of 529 accounts, check with your tax advisor or the tax laws for your particular state about the taxability of this type of account.)
For Oasis employees, the $1,000 minimum to open a College-Boundfund account is waived if you set up automatic deductions from your payroll into the account. Plus, there are no income limitations like other 529 plans. You or anyone else can contribute to your child’s CollegeBoundfund account until it reaches $350,000.
Freedom to Choose
With the CollegeBoundfund, you can use the funds to pay for your child’s qualified education expenses (tuition, books, fees, room and board and other supplies needed to attend an institution of higher learning) at any accredited higher education institution in the United States, including most community colleges and vocational-technical schools, and even many foreign colleges and universities. (Be sure the money is used for these things. A federally-mandated penalty of 10% or additional tax applies on any earnings you withdraw for non-qualified expenses)