North Carolina’s savings plan encourages holiday giving that lasts
Published 12:00 am Thursday, December 8, 2016
RALEIGH – Contributing to or opening an N.C. 529 college savings account is a great gift for a loved one in your life headed to college – whether soon or in the future. A gift that supports higher education will have a lasting impact long after holiday toys are outgrown or forgotten. Year after year, parents, grandparents, other family members, and friends can give the gift of education by contributing to an N.C. 529 account.
DID YOU KNOW?
- Instead of buying your 10-year-old an Xbox One or a new PlayStation 4, you could put that $300 to better use with an N.C. 529 plan.
- On average, if you start saving for a newborn in an N.C. 529 account and contribute just $500 per year, you could accumulate $9,000 in principal and, depending on the performance of your chosen investment option, accumulate additional earnings by the time the child is college-age.
- Another way to possibly boost savings in North Carolina’s National College Savings Program, known as the N.C. 529 plan, is to enter the N.C. 529 Lucky Three Drawing this month. If you have, or open, an N.C. 529 account and enter the drawing, you might be one of three entrants selected at random to win $529 to add to your N.C. 529 account. Submit just one entry and all contributions of $25 or more made in 2016 will count as additional entries. The drawing closes at 11:59 p.m. EST on Dec. 31.
“We are eager to encourage families to save for college, and the N.C. 529 Lucky Three Drawing is a good reminder to put away as much as possible,” says Michael Ochsenhirt, N.C. 529 savings program manager. “There’s no cost to open an account, the minimum contribution is low, and an account owner just might win an extra $529 to add to an existing account or split between accounts if saving for several beneficiaries.”
More information about the N.C. 529 Lucky Three Drawing is available from College Foundation, Inc., the N.C. 529 plan administrator, by calling 800.600.3453 or visiting CFNC.org/NC529 to view contest rules and enter. Winners will be drawn on Jan. 4, 2017 and announced on Jan. 11, 2017.
An N.C. 529 account is a good way to play a part in a loved one’s future. It is a tax-advantaged (free from federal and North Carolina taxes when used for qualified higher education expenses), simple way to put away money for college. Friends and family members can contribute to the account as well, increasing the amount available when the child heads off to college.
About North Carolina’s National College Savings Program
The N.C. 529 plan is a program of the State of North Carolina, established and maintained by the North Carolina State Education Assistance Authority as a qualified tuition program under federal tax law, and administered by College Foundation, Inc.
To learn more about North Carolina’s National College Savings Program, its investment objectives, risks and costs, read the program description available at NC529.org, CFNC.org/NC529, or call 800-600-3453 toll free to request. Non-North Carolinians should check with their home state about tax or other benefits associated with investing in its own qualified tuition plan.