MONTGOMERY, Ala. (April 19, 2016) – CollegeCounts, Alabama’s 529 Fund, will celebrate 5/29 Day (May 29) with a second annual statewide giveaway that focuses on babies born in the month of May. Thirty-one winners will be selected at random to receive a $529 contribution to an existing or newly opened CollegeCounts account.
“This promotion was put in place to encourage families to begin investing early and often,” said Young Boozer, Alabama State Treasurer. “When a baby arrives it’s hard to plan for long-term, but the hope is to bring to light the importance of planning for what’s next.”
Parents of children born May 1-31, 2016 have until 5 p.m. CT on June 15, 2016 to visit AL529Day.com and enter their contact information and the date of their child’s birth. Winners will be selected statewide at random and notified by July 1, 2016. Birth certificates or commemorative birth announcements for each winner’s child must be submitted to receive funds.
“The first step for any family is to determine how much – no matter how small or large – the initial investment will be. From that point forward, we encourage families to contribute on a regular basis to build additional funds for future college expenses, “ said Boozer.
CollegeCounts has no minimum contribution requirements, allowing families to open accounts and save a little each month through quality investment funds, including Vanguard, T. Rowe Price, Fidelity, PIMCO, Dodge and Cox, MainStay, and DFA.
According to independent investment research firm Morningstar, 35 percent of parents using 529 plans say they do so for tax benefits. Under the 529 Section of the tax code, special tax benefits are provided to families saving for future college expenses. Alabama taxpayers may receive a generous state income tax deduction of up to $10,000 for married couples filing jointly ($5,000 for single filers) on contributions to CollegeCounts each year.
Funds may be withdrawn and used at colleges, universities, trade schools and graduate schools at one-, two- and four-year schools in Alabama and across the U.S. – including vocational, technical, community, public and private colleges and universities – for qualified expenses like tuition, fees, room and board (if enrolled at least half-time), books, supplies, and equipment required for enrollment, including computers.