JACKSONVILLE, FLa. – Florida families have through Aug. 15 to take advantage of a special incentive to encourage families to open a 529 savings plan account. New accounts will receive $50.
There are now more than 100,000 active Florida 529 Savings Plans with a combined $1 billion in savings and new account openings are currently up 60% year over year, which suggests families who were able to save money during the pandemic are putting it to good use by starting to save now for their child’s education.
According to spokeswoman Shannon Colavecchio, the 529 plan has been enhanced. It is now designed exclusively for Florida residents. New investment options are now available and there has been a 70% reduction in fees.
“The 529 savings plan is an investment plan that can be used nationwide for qualified education expenses, including tuition, fees, room, board, books and supplies. Investment earnings are tax-free as long as they are used for those expenses,” said Colavecchio.
The account owner maintains control and chooses when and how to invest. Unlike a Prepaid Plan, monthly payments are not required or fixed. Families save what they can, when they can. Also, unlike the Prepaid Plan, a 529 Savings Plan account does not lock you in now to what the cost of college will be in the future.
A monthly contribution of $25 into the Florida 529 Savings Plan could grow to nearly $9,000 over the next 18 years, according to the Florida Prepaid savings calculator.
To learn more, go to www.myfloridaprepaid.com/529feeling.