Peace of mind for the future
As an HR professional, you are familiar with the difficult circumstances facing your employees right now. With so much going on, thinking about saving for education may feel like one more item on a never-ending checklist. Yet, the thought of student loans often makes people shudder. What if the cost of higher education didn’t have to be so overwhelming?
my529, Utah’s official 529 educational savings plan, can take away some of that uncertainty.
The cost of higher education has been steadily rising for years. Yet, in today’s job market, having the skills and training gained through traditional college, technical college or an apprenticeship is more important than ever.
529 plans have tax advantages to encourage saving for education expenses. The earnings in a 529 account grow tax-deferred, and withdrawals are tax-free when applied toward qualified education expenses.
Not only can my529 funds be used for tuition and fees, but they may also be used to help cover the costs of qualified education expenses like housing, textbooks, computers, and other necessary supplies required to enroll in or attend an eligible educational institution. Funds can even be used to cover tuition expenses for K-12 up to certain limits.
It’s never too late to set up a my529 account and begin saving for education expenses. Once an education savings plan is open, that money has the opportunity to grow and potentially offset school costs. Every dollar saved in a 529 account is a dollar parents and students won’t need to borrow and pay back later with interest.
Setting aside a little bit of money in a 529 account on a regular basis creates a dedicated place to save for upcoming qualified educational expenses—a place where families are less likely to access the money and use it in other ways. Traditional savings accounts do not offer the same potential return on investment that an investment account has, and most other investment vehicles are taxed in some way.
With a my529 account, deposits are quick and easy and can be automated through your my529 account. Withdrawals are just as easy. And if one beneficiary doesn’t use the saved funds, the option to transfer funds to another beneficiary is available.
No matter how small the contribution, saving regularly with a my529 account can alleviate some of the cost of higher education and make a big difference toward educational goals. Learn more at my529.org.