Investing in Your Child’s Education – Tax Free
April 3, 2013
South Carolina State Treasurer
Columbia, SC
April 2, 2013
We all know that the cost of a college education is rising, sodeveloping a saving strategy now is more important than ever. The State Treasurer’s Office administers a college savings plan that will helpyour family meet the rising costs of tuition. It’s called the FutureScholar 529 College Savings Plan, and it’s tax free.
A Future Scholar account, unlike a typical savings, stock or mutual fund account, gives you an added value of being tax free when it’s used forqualified higher educational expenses, such as: tuition, books,supplies, or room and board. In South Carolina, the average family’sstate income tax rate is 7%. That means for every $10,000 you invest in the plan, you save $700 off your state tax bill. Future Scholaraccount earnings are also exempt from federal income taxes, so yourtotal tax savings could be even higher. Accounts are transferable, soany family member can benefit from the Future Scholar account.
More than 60,000 South Carolinians and more than 30,000 futurecollege students from around the country have chosen the South CarolinaFuture Scholar 529 plan. It is consistently rated as one of the topcollege savings plans in the nation, receiving the highest ratingpossible by Savingforcollege.com.
It’s never too late to invest in your child’s education, so no matterthe age of your child or grandchild, please consider giving him or herthis important gift. You’ll be able to ease your tax burden at the same time. A $5,000 deposit into a Future Scholar account could put a 7%state tax deduction of $350 in your pocket. That’s great news,especially at tax filing time.
Enrollment is easy. There’s no minimum contribution, so opening aFuture Scholar account can be as simple as carving out a monthlycontribution from your budget.
You can take advantage of South Carolina’s first-rate plan by visiting www.futurescholar.com or contacting a financial advisor. Sign up for a Future Scholar 529account today, and help make those dreams for your child’s future cometrue.
