It’s a request that many millennial parents are making: “We’re overrun with toys. What about a starting a 529 college savings plan for your grandchildren?” It’s not as much fun as a big toy fire truck, but a fund that you contribute to over the years will really help when the little darling is ready to go to college. These plans are widely available, simple, secure and many have online features that let account owners invite others in the family to make a gift.
KTVZ.com’s recent article, “Meaningful gift for a child: To their college savings fund,” says the Oregon College Savings Plan also offers downloadable gift certificates for birthdays, holidays, and non-holidays for those interested in making a gift contribution to a child’s account.
Supporting a child’s future education can be a win-win for everyone.
The Oregon College Savings Plan is a state-sponsored, tax-advantaged 529 savings plan that offers a variety of low-cost investment portfolios to choose from, including age-based, multi-fund, single-fund, and guaranteed options.
Anyone with a Social Security or Federal Tax ID number can start an account or contribute to an Oregon College Savings Plan account. A 529 account can be started with as little as $25, and any earnings grow free from federal tax.
These 529 College Savings Plans also offer certain gift and estate tax planning benefits, so ask your estate planning attorney about this. In some instances, the contributor can receive state tax benefits to incorporate the gift into his or her overall estate and legacy planning.
Contributions to a 529 College Savings Plan account may be eligible for a state income tax deduction for taxpayers. In Oregon, the deduction is up to $4,660 for taxpayers filing jointly or $2,330 for single filers for tax year 2017, with some limitations.
When used for qualified higher education expenses, the withdrawals are tax-free for state and federal taxes. You can use the 529 funds for tuition, room and board, books, supplies, computers, certain required fees and some other related technology costs. The funds can be used at most accredited colleges in the US and at some colleges overseas.
Reference: KTVZ.com (December 7, 2017) “Meaningful gift for a child: To their college savings fund”