Families can get $50 added to 529 Savings Plans opened now through October 29, 2023
- Kicking off National College Savings Month, Florida Prepaid is encouraging families to start saving this fall toward a child’s future college costs by seeding $50 into newly opened Florida 529 Savings Plan accounts.
- As little as $25 saved each month into a Florida 529 Savings Plan can add up to nearly $9,000 over a child’s infant and school years – offering families a steady, affordable way to save for college tax-free even amid challenging economic times.
- New federal rules for the use of 529 Saving Plans make them even more flexible and tax-advantaged, with approved uses ranging from K-12 expenses to future Roth IRA transfers.
TALLAHASSEE, Fla. – As families settle into new school year routines, after-school schedules and homework assignments, the Florida Prepaid College Board is offering families an incentive to save early for one of their children’s most important academic expenses – college and other postsecondary education.
Kicking off National College Savings Month, Florida Prepaid will contribute $50 into every Florida 529 Savings Plan account opened between September 5 and October 29, 2023.
For families transitioning into public school, the new school year is an ideal time to transition daycare and preschool tuition into a college savings fund. As little as $25 contributed each month into a Florida 529 Savings Plan could grow to nearly $9,000 over the next 18 years, according to the Florida Prepaid savings calculator.
The nationally recognized Florida 529 Savings Plan is a flexible, tax-free investment plan that can be used nationwide for qualified education expenses, including tuition, fees, room, board, books and supplies.
Also, recent updates to tax rules now allow families to use their 529 Savings Plan funds toward tuition and mandatory fees for K-12 education, and beginning January 2024, parents with unused college savings in a 529 account have the opportunity to transfer that money to a beneficiary’s Roth IRA (individual retirement account).
“When families can make consistent college savings part of their monthly household budgets, the path to postsecondary education is much less stressful,” said John D. Rood, Chairman of the Florida Prepaid College Board. “The Florida 529 Savings Plan offers an affordable, flexible way for Floridians to save a little each month and grow that money over time. The $50 contribution to newly opened plans is our way of supporting families on this path.”
The Florida 529 Savings Plan is available exclusively for Florida residents. A Morningstar medal-winning plan, the Florida 529 Savings Plan allows families to save what they can when they can – and is regarded as one of the nation’s top-performing 529 plans by Savingforcollege.com. There are now more than 130,000 active Florida 529 Savings Plans, with a combined $1 billion in savings, growth that reflects the popularity of the Florida 529 Savings Plan.
Investment earnings are tax-free when used for qualified educational expenses. With a 529 Savings Plan, the account owner maintains control and chooses when and how to invest.
To learn more, visit myfloridaprepaid.com today.
The Florida Prepaid College Board manages the Stanley G. Tate Florida Prepaid College Program and the Florida 529 Savings Plan. Both are tax-favored 529 college savings plans authorized by Section 529 of the Internal Revenue Code. In 1987 the Florida Prepaid College Program was created by the Florida Legislature and the commitment and dedication of Mr. Stanley G. Tate to provide Florida families with an affordable means to save for their children’s future college education. The first Florida Prepaid College Plans were sold in 1988 and were augmented with the addition of the Florida 529 Savings Plan in 2002. The Board also oversees two direct-support organizations – The Florida Prepaid College Foundation and Florida ABLE, Inc., d/b/a ABLE United. Florida Prepaid is the largest, longest running and most successful prepaid plan in the nation, with more than 2 million Florida Prepaid College Plans purchased and more than $15 billion in assets. The 529 Savings Plan has more than 130,000 active accounts, with a market value of more than $1 billion.
