Benefits of 529 Plans and Opening One This Holiday Season

Holiday Gifting with 529 Plans: Exploring the Benefits

Finding the perfect gift for someone you love can be one of the greatest joys of the holidays. However, finding  just the right gift for the kids or grandkids in your life can sometimes prove a little challenging. Since they probably already have plenty of toys, games and clothes, you’re looking for the inspiration that will help you find a gift that is truly special.

How about education? With a 529 plan contribution, you can give a meaningful gift that has a direct impact on their journey to achieving their dream. Let’s take a look at the benefits of 529 plan contributions with Future Scholar for holiday gifting.

The Benefits of 529 Plan Contributions for the Holidays

529 accounts are specialized investment accounts that enable families to save for their children’s college education. Thanks to the power of compounding interest, as well as great tax benefits, these accounts give families a smart way to save for educational pursuits, whether that means college, trade school, or an apprenticeship.

The gift of education is invaluable and will be appreciated by your loved ones for years to come! But there are many more reasons to consider creating or contributing to a 529 account for a child or grandchild in your life – let’s explore some of those together right now.

It’s Easy to Make 529 Contributions

It’s lots of fun when you find amazing gifts for your loved ones. However, wrapping, packing and shipping those gifts can be quite the undertaking!  And if you’re traveling to visit family for the holidays, it can be hard to find space for gifts in your car or suitcase.

A contribution to a 529 account is an amazing gift that does not require packing or wrapping! And best of all, making the contribution is simple. It’s also easy to open a new 529 plan for a child or grandchild who’s not yet enrolled. The online application takes only a few minutes to complete, so whether you’re opening a new 529 account or making a 529 contribution, the gift of education is both a meaningful and low-stress option.

If you’re a parent who knows that a contribution to college savings is one of the most important gifts your child could receive, you will want to encourage loved ones to contribute to your child’s account. Inviting others to give the gift of education to your child doesn’t have to be awkward. Follow our tips to help you set the tone.

All in all, you’ll find that 529 contributions are both thoughtful and convenient holiday gifts for you to give – or for your child to receive.

529 Contributions Get Better with Time

Another benefit of 529 plans is how the funds you invest have the potential to grow over time. When you contribute any amount of money to a 529 account, you know you are investing in a loved one’s ability to pursue their educational dreams down the road.

A 529 contribution is truly one of the few gifts that gets better with time. The contribution you make this holiday season is both an immediate present and a thoughtful gesture the recipient will appreciate and benefit from years from now.

Contributors Can Receive Tax Breaks

As gifts, Future Scholar 529 plans don’t just provide benefits for their recipients. They also enable contributors to enjoy significant tax breaks in many states.

For example, when a South Carolina resident makes a 529 contribution to a Future Scholar account, 100% of that contribution may be deductible on their state income taxes.  

Even better, South Carolina residents can make 529 contributions to a Future Scholar account and deduct those contributions for the prior tax year, up until the tax deadline. That gives contributors extra time to make last-minute contributions and receive the tax benefit for contributing to a Future Scholar 529 plan.

Not only are 529 contributions incredibly easy to make and continue to be wonderful gifts long after they’re initially made, but they also can lead to tax breaks for the contributor. See why they’re terrific holiday gifts for every child in your family?

How to Give the Gift of Education with a 529 Plan

Giving someone the gift of a 529 contribution is easy – no wrapping paper or shipping boxes necessary. Whether you want to open a new account in the name of your child or grandchild or simply want to contribute to an existing account, Future Scholar makes everything easy.

Open a New 529 Account

For South Carlina residents, opening a new Future Scholar 529 plan is as straightforward as 1-2-3:

• First, gather all the important information you’ll need to open the new account, including the name, address, date of birth and Social Security number for both yourself and the intended beneficiary.
• Next, visit the Future Scholar website and click “Enroll”. From there, you can review your investment choices and choose an investment plan that matches your goals.
• Then, choose your enrollment method. You can enroll in a Future Scholar 529 plan online or request an enrollment kit with a paper application be mailed to your home.

That’s it! All that’s left to do is to set up automatic contributions - superb tools to ensure money is added to the account on a regular basis - and invite others to contribute to the new account.

Remember, even though each account can only have one beneficiary, you can open a separate Future Scholar account for every child you want to give the gift of an affordable education.

Contribute to an Existing 529 Plan

What if the child or grandchild already has a 529 plan? No problem! It’s still a very simple process to gift a 529 contribution. There are many ways to contribute, such as:

• Account owners can invite others to contribute to their 529 account by logging into their account and sending an eGift invitation to invite loved ones to contribute.
• Family and friends can also contribute via mail by sending a completed contribution form and check.

If you’d like to make your 529 contribution gift even more special, consider making the moment memorable by writing your loved one a heartfelt card to accompany the 529 contribution. It’s the perfect solution for those of us who like to give something physical to our loved ones.

Wrap Up

The best holiday gifts are the ones that keep on giving. 529 contributions do more than that – they’re also convenient and can offer great tax benefits. With Future Scholar, the benefits of 529 contributions are easier than ever to experience, so enroll today to get started! Happy holidays!