What is National 529 Day? | Future Scholar
What is National 529 Day, and Why Does it Matter?
Saving for their future education is one of the most important things you can do for your children or grandchildren. Many of the fulfilling and high-earning careers they will dream of pursuing will require some further education after high school. Whether it’s a four-year college degree or a vocational program, each education pathway comes with tuition and other related expenses. Luckily, there’s a great way for families to help meet those costs.
It’s the reason we celebrate National 529 Day each year. We want to show families that a traditional savings account isn’t the only way to save for a child’s future education. Take a closer look at what 529 Day is, why it’s important, and how you can celebrate it.
National 529 Day – Explained
Observed each year on May 29, National 529 Day is a fun way to raise awareness about the importance of saving for future education expenses. But the main purpose of National 529 Day is to highlight the benefits of saving with a 529 plan for those education needs – whether that means k-12 expenses, college, trade or technical school, or a registered apprenticeship program.
When you save with a 529 plan, you enjoy significant tax advantages. Your earnings not only grow tax-free, but they also won’t be taxed upon withdrawal when used for qualified education expenses, such as tuition fees, room and board, books, and even computers.
A 529 plan enables families and friends to contribute collectively to a child’s future education. And you can combine the funds with financial aid to make college and other higher education more affordable. All in all, 529 savings plans are excellent tools to open new doors and unlock exciting futures for any child in your family.
Ready to Celebrate 529 Day? We’ve got a few ideas!
Start a 529 Plan for Your Child
Make 529 Day the day you begin saving for your child’s future. With South Carolina’s Future Scholar 529 College Savings Plan, it’s easy to open an account and make an initial contribution. With a variety of ways to invest and no minimum contribution, there’s certainly a savings option that suits your budget and savings goals.
One of the many great benefits of a 529 account is that your earnings are compounded. Through the power of compounding, you can make more gains on your gains – all tax-free. With that kind of earning potential, the sooner you start a 529 plan for your child or grandchild – and the more contributions you make – the better.
Make a Bonus Contribution
Already have a 529 account and make regular contributions? In that case, why not celebrate 529 Day by making a bonus contribution?
Every contribution added to an account could make the total sum grow not only larger but also faster. Did you get a promotion at work, earn a bonus, or come into some unexpected cash from an inheritance? Put that money to good use in a 529 account. Remember, you can contribute up to $575,000 per beneficiary in South Carolina, and 100% of every contribution can be deducted from your South Carolina state income tax return.
Invite Friends & Family Members to Contribute
529 Day helps boost awareness of 529 plans each year, so it’s also a good time to ask friends and family members to contribute to your child’s future. With Future Scholar 529, it’s easy to send an eGift link and request the gift of education.
Make a Gift Contribution to a Child’s 529 Account
You can also celebrate National 529 Day by contributing to a loved one’s 529 account.
Your contribution is tax-deductible on your South Carolina income tax return, and it provides a unique and meaningful gift. There's no better way to show you care than by helping them achieve their future dreams.
Celebrate National 529 Day with Future Scholar
Future Scholar celebrates 529 Day annually with the PalmettoBaby Program. Every child born on May 29th in South Carolina is eligible to receive $529 in a privately funded grant. It's the perfect sum to start saving with Future Scholar!
Even if your child wasn’t born on May 29th this year, now is a stellar time to begin. It’s never to early or late to begin saving. Open an account today!
