September is College Savings Month in Alabama
Treasurer Young Boozer highlighted 529 plan tax benefits, flexible uses and early saving as families faced rising education costs.
State Treasurer Young Boozer has proclaimed September as College Savings Month in Alabama, highlighting the benefits of planning early for higher education costs.
By saving early, parents and grandparents can help make future education goals more attainable and create more opportunities for their children and grandchildren.
“College Savings Month serves as a timely reminder that it is never too early, or too late, to start planning for a child’s future,” Boozer said. “CollegeCounts is designed to break down financial barriers for Alabama families. By starting early, even with modest contributions, families can leverage tax benefits and compound growth to build a strong foundation for their loved ones.”
CollegeCounts529 offers several features intended to make education savings more accessible. Alabama taxpayers who contribute to a CollegeCounts529 account may be eligible for a state income tax deduction of up to $5,000 for single filers and up to $10,000 for married couples filing jointly when both spouses contribute.
The plan has no minimum contribution requirement, and accounts can be opened online. Account owners can choose from several investment options, including age-based portfolios that adjust as the beneficiary gets older, as well as target and individual fund portfolios.
Family members and friends can also contribute to a CollegeCounts529 account, allowing contributions to be given for birthdays, holidays and other milestones.
“As families prepare for the increasing cost of higher education and workforce training, 529 plans remain one of the most effective ways to help build dedicated education savings over time,” the treasurer’s office said.
CollegeCounts529 offers tax-advantaged savings that can be used at eligible colleges, universities, trade schools and other postsecondary institutions in Alabama and across the country. Eligible institutions include public and private colleges and universities and two-year vocational, trade, technical and professional schools.
Qualified expenses include tuition, fees, books, supplies and equipment required for enrollment, including computers. Funds may also be used for room and board for students enrolled at least half time, certain apprenticeship program expenses and other qualifying education expenses.
“Starting to save early can make a meaningful difference, giving families more time to build a strong foundation for future education expenses and take advantage of attractive state tax benefits,” the treasurer’s office said.
To learn more about CollegeCounts529, explore investment options or open an account, visit CollegeCounts529.com.
