The April tax deadline has been postponed until July 15, providing families a little more time to prepare their tax returns. With the benefit of an extension, it's also a great a time to evaluate your spending and savings for next year, as well as consider your investments for the future. While some things have changed in recent months, the need to save for your child's education hasn't. So now is the perfect time to investigate Future Scholar, South Carolina's 529 college savings plan.
Here are 10 reasons why:
1. Full Deduction on South Carolina Taxes
Contributions to a Future Scholar 529 College Savings Plan may provide immediate tax savings for you and your family. If you're a South Carolina taxpayer, your contributions are deductible on your state income tax return. Best of all, you have until the new July 15 tax deadline to make contributions for the prior tax year. This means it's not too late to lower your 2019 tax bill!
2. Tax-Free Growth
While an upfront tax deduction is a nice perk, the real power of Future Scholar lies in the fact that any interest earned is free from state and federal income taxes when you use the earnings on qualified educational expenses. This means you never have to worry about a future tax bill chipping away at your investment portfolio.
3. Simple to Open
Future Scholar makes opening a 529 college savings plan a breeze. It only takes a few clicks and some basic information regarding beneficiaries to get started. You can open an account in less than an hour and start investing right away!
4. Anyone Can Open an Account
You don't have to be the parent of the beneficiary, or a resident of South Carolina to open an account. Parents, grandparents, aunts and uncles, and even friends can open an account. In fact, multiple accounts can be established for the same child.
5. No Minimum Contribution
Every little bit helps. That's why Future Scholar doesn't require minimum contributions for 529 college savings plans. Whether you want to contribute $25 or $2,500 per month, no amount is too small to begin paving the way for higher education.
6. Multiple Investment Options
It's important to have options. With streamlined investment options - including age-based plans - and automated contributions, it's easier to start saving today. However, if you're someone who likes to be a bit more hands-on with your investing, you can customize your portfolio with different funds and accounts to achieve the proper mix for your liking.
7. Scholarships Mean No Withdrawal Penalties
If your student ends up receiving a scholarship for college, you're able to withdraw the amount of the scholarship without receiving a 10% federal penalty. Earnings on this withdrawal would be subject to federal and possibly state income tax. Remaining funds can be used for educational expenses not covered by the scholarship, or a new beneficiary can be named.
8. Covers More Than Tuition
Tuition is just the start! Your Future Scholar 529 College Savings Plan can be used to cover the purchase of textbooks, computers, supplies, and other qualified expenses that are required for enrollment or attendance at an eligible institution.
9. Highly-Rated for Performance and Low Fees
Forbes recently named the South Carolina Future Scholar 529 College Savings Plan among the five top-performing plans in the country. In fact, Future Scholar is consistently rated as one of the best college savings plans in the country for both performance and low fees.
10. Can Be Gifted in Multiple Ways
The flexibility of Future Scholar makes it easy for other friends and relatives to contribute to an existing account. Loved ones can even send physical or digital gift cards to you or the recipient.
Open an Account Today
Whether you're a grandparent, a new parent, or you have children in high school, it's never too early or late to begin contributing. Open an account today and enjoy the powerful benefits that more than 180,000 Future Scholar account holders have already discovered!
For more information, go to futurescholar.com