If you’re thinking about the future, you may have already created an estate plan. Many people don’t take the time to carefully consider college savings plans. Taking the time to do this can allow you to contribute to your child’s education throughout your lifetime.
Look at the following information to learn more about your Arkansas savings plan options. If you have any questions, meet with an estate planning attorney.
This blog post discusses the GIFT College Investing Plan. This is one of the plans that you may want to consider investing in. A second option is discussed in part 2 of this 2 part article.
What is the GIFT College Investing Plan?
This plan allows an affordable way to begin your college planning. With as little as $10, you’re able to start your savings. You will be required to commit to investing a least $10 a month or $30 per quarter.
This plan offers many different investment options for a varied investment.
You’re able to reach a maximum account balance of $366,000.
Additionally, the state will match your contributions depending on your income level! This includes a matching grant of up to $500. In order to qualify for this benefit, you must have an AGI of $60,000 or less.
What are some of the benefits of the GIFT College Investing Plan?
There are many tax benefits to this savings plan. You’re able to take advantage of tax deferred growth. If you make withdrawals from your account for education related expenses, distributions will be free from federal income taxes.
As an Arkansas resident, you’re able to take advantage of state tax deductions by deducting up to $5,000 or $10,000 for married couples, of your contributions.
Additionally, the fact that you may be able to take advantage of matching contributions, can make this plan extremely attractive.
If you have any questions about your estate plan or college savings plans, consult with a qualified estate planning attorney.