Saving for college expenses is a tough undertaking, but by doing so, you have the opportunity to help the children and grandchildren you love succeed. Knowing your options and getting the facts can help make the task easier. CollegeCounts is a 529-qualified tuition program that provides flexible investment options specifically designed to help you build college savings.
Give the gift of education. Parents and grandparents alike can open an account and jointly contribute on behalf of the beneficiary to celebrate birthdays, holidays, graduations and special occasions.
Track the progress. The owner of the account is able to enjoy its progress by monitoring savings—and proudly inform the child/grandchild when the time comes. With no
minimum or ongoing required contributions, the CollegeCounts 529 Fund is a great way to reach your college savings goals. Account owners can also set up an automatic monthly investment plan to make saving easier by having a smaller amount withdrawn from their bank account each month.
Explore the flexibility. Funds may be withdrawn and used at colleges, universities, career technical schools and graduate schools at one-, two- and four-year schools in Alabama and across the United States for any qualified expenses such as tuition, fees, books and supplies required for enrollment. Room and board are also qualified expenses when the student is enrolled on at least a half-time basis. If the beneficiary earns a scholarship, the funds can be used for expenses not covered—or the account owner can change the beneficiary to another member of the family.
Reap the rewards. Any amount contributed to CollegeCounts qualifies for special tax benefits in Alabama, including a generous state income tax deduction of up to $10,000 for joint filers ($5,000 for individuals) each year. In addition, funds grow tax-deferred and will be tax-free when withdrawn for qualified college expenses.
Don’t miss out for 2015! Contributions made prior to December 31 will be eligible for savings on your 2015 tax return.