Yes, tax season is still a couple months away, but the end of the calendar year means it’s time to get your annual finances in order.
And that means getting your last 2018 contributions in for your CollegeCounts 529 accounts! Whether you’ve been waiting until the last minute or you’ve been steadily saving all year long, now is the best time to contribute and benefit from tax advantages.
If you need a refresher, remember that any contribution made on or before December 31 (or postmarked by December 31, if you mail in a check) is eligible for Alabama state income tax benefits for the 2018 calendar year. Contributions are deductible up to $5,000 per tax return if you’re filing individually, or up to $10,000 if you’re married and filing jointly and both spouses are making contributions1.
Conveniently, the end of the year is the perfect time for one last substantial contribution, isn’t it?
If you’re expecting a bonus check or a raise at the end of the year, you could set some of that cash aside to contribute to your child’s college savings fund.
Similarly, if your children already have way too many toys (and they’re expecting even more), ask your friends and family to make a holiday contribution to your CollegeCounts 529 account in their name. It may not be the sort of gift they can unwrap and play with right away, but as long as you’re more patient than they are, they’ll be grateful when they’re faced with college expenses years from now.
Whatever your excuse may be, we support any and all reasons for last-minute contributions. December 31 will be here soon, so invest today, especially if you still need to open an account!