Why Opening 529 College Savings Plans are Worth It

Wondering why you should open a 529 college savings plan as opposed to some other type of savings or investment account?

Savings Jar

As one financial expert noted in a recent Wall Street Journal article, there is “very little potential downside” to opening a 529 plan.

“I couldn’t agree more with that assessment,” said South Carolina Treasurer Curtis Loftis. “It’s especially true of Future Scholar – South Carolina’s 529 College Savings Plan.  There are just too many tax advantages not to open a Future Scholar account if you’re looking at ways to save for college.”

Earnings on a Future Scholar account grow tax-free and if you spend the money on qualified higher-education expenses, you do not have to pay federal or state taxes when you withdraw the funds.

“In addition, if you file a South Carolina tax return, you may be eligible for additional tax advantages,” Loftis said.

To read the article or learn more about why opening a 529 is worth it, read on: http://www.wsj.com/articles/is-starting-a-529-worth-it-1480907461.