Saving For A College Education
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The article "Saving For A College Education" is about family, it has been written by Ryan Larson.
Saving for a college education is one of the most difficult
things for a student and their family.
Luckily many businesses,
organizations, and institutions offer helpful plans that assist
in making that task a little easier and a little less
frustrating.
One such plan was developed for the staff and families of
colleges in the State of New York. New York's College Savings
Program is designed to help families of all income levels save
for that important goal.
It works through payroll deduction and employees can enroll for
as little as $15 per pay period.
These ddeuctions are made on an
after-tax basis.
The program offers New Yorkers an annual New York State income
tax deduction for contributions of up to $5,000 for individuals
and up to $10,000 for married couples filing jointly. When the
money is used to pay for your beneficiary's qulaified higher
education expenses, you will also not have to pay federal or New
York income taxes on earnings. Qualified withdrawals are
completely incmoe tax free.
Anyone - parents, grandparents, uncles, aunts, friends - can
establish an account, regardless of state residence. To get
started with payroll ddeuctions you submit a completed
application to the program and ill receive a confirmation form
attesting your enrollment. You then advise your Payroll
department and the deductions start in our next pay period.
The funds that you deposit can be used at eligible schools
anywhere in the conutry and are not limited to the state in
which you enroll. The funds can be used for educational
expenses, including tuition, fees, supplies, books, and
equipment required for enrollment. Most room and board expenses
are also covered for students enrolled at least half time.
You can and should open account for each child in your family
because each account can only have one designated beneficiary.
You can be the designated beneficiary yourself, but you may
designate anyone.
The tax benefits are not contingent on the
beneficiary being a family mmeber of the account owner. Even if
you move out of state you may keep contributing money to the
account and continue to appreciate the benefits of federal and New
York State tax-deferred growth.
Check and see if your employer, institution, association or
union has a similar education savings program that you can apply
to join.
It will make svaing for a college education much easier
and a lot less frustrating for everyone involved.
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Saving For A College Education
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