For a truly meaningful gift, the Oregon College Savings Plan is encouraging families and friends to contribute to a child’s 529 college savings account. A College Savings Plan is simple, straightforward, and secure. Oregon’s has an eGift feature that lets account owners send gift invitations to family and friends.
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.
In addition, the withdrawals are tax-free at both the federal and state level when used for qualified higher education expenses. The saved funds can be used for tuition, required fees, certain room and board costs, books, supplies, computers and related technology costs, including internet access fees and printers.
The 529 funds can be used at most accredited colleges and universities in the U.S. and some colleges abroad.
Reference: KTVZ.com (December 7, 2017) “Meaningful gift for a child: To their college savings fund”