Looking to save for college? There's financial relief for all Coloradans
Our college years can be some of the most pivotal in life; and, of course, they come with a cost.
Studies from the Education Data Initiative show the average cost of tuition is $35,551 per student per year, including books, supplies, and daily living expenses. That cost has more than doubled since 2001, with an annual 7.1% growth rate. However, there's financial relief here in Colorado.
"Today is a unique day. It's National 529 Day," President and CEO of Reynolds Financial Group Roger Reynolds explained.
Reynolds is raising awareness about 529 Plans. These education savings plans allow a saver to open an investment account to save for the beneficiary's future qualified higher education expenses and anybody can contribute.
"We actually allow the money to grow tax free. The money just needs to be used for education expenses... college tuition, room, and board... it could be a computer, printer, internet," said Reynolds.
He also says it's a nice tax break for parents looking to save money.
"There are no tax implications at all. So that money grew, and we can take it out without taxes."
However, there are some rules.
"There's a 10% penalty of you use money on things other than the qualified education expense. There are some examples, for instance, if your child goes to military academy or they pass away or become disabled or receive a tax-free scholarship."
But overall, they're a way to help ensure your kids are set up for success.
Learn more here: https://reynoldsfg.com
