The holiday season is fast approaching, and with it comes the end of the 2017 calendar year.
If you’ve been waiting for the right time to contribute more than the regular amount to your child’s CollegeCounts 529 fund, now’s the perfect opportunity!
Remember, any contribution made on or before December 31 (or postmarked by December 31, if you’re mailing a check) is eligible for Alabama state income tax benefits for the 2017 year. Contributions are deductible up to $5,000 per tax return if you’re filing separately, or up to $10,000 if you’re married and filing jointly and both spouses contribute.
If your children already have way too many toys, consider asking your friends and family to make a contribution to their CollegeCounts 529 fund for the upcoming holiday season.
And if you’re expecting a bonus check or a raise at the end of the year, don’t spend it all on yourself! Consider setting aside a portion of it for a larger end-of-the-year contribution to your child’s college savings fund.
Your children might not be able to unwrap this sort of gift and play with it right away, of course. But when they’re older, and they’re facing the challenge of college tuition, textbooks, living expenses, and much more, they’ll understand—and they’ll be eternally grateful.
December 31 will be here soon, so don’t let the deadline pass before you invest in what’s next. Open an account and start contributing today!