CollegeCounts, Alabama’s 529 fund, will celebrate 5/29 day (May 29) with a third annual statewide giveaway focused on babies born in the month of May. CollegeCounts will randomly select 31 winners to receive $529 in contributions to an existing or newly opened college savings account.
Parents of babies born between May 1-31, 2017 have until July 1, 2017 to visit AL529Day.com and enter their contact information and the child’s date of birth. Selected winners must provide a birth certificate or commemorative birth announcement to receive funds.
“The defining motive for the 5/29 Day promotion is to encourage families to develop a savings strategy as early as possible,” says Alabama State Treasurer, Young Boozer. “Saving for college may not be a top priority for new parents, but the hope is to bring forth the importance of planning now for what’s to come.”
CollegeCounts has no minimum contribution requirement, making it easy for families and friends to invest a little at a time. The plan utilizes quality investment funds, from Vanguard, T. Rowe Price, Fidelity, PIMCO, Dodge and Cox, Mainstay and DFA.
Under the 529 Section of the tax code, special tax benefits are provided to families saving for future college expenses. In addition, 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Funds may be withdrawn and used at colleges, universities, trade schools and graduate schools at one-, two- and four-year schools in Alabama and across the U.S. – including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.
“We are not underestimating the daunting task of paying for higher education, but CollegeCounts was created to make the process easier – By making the initial investment early, the longer that amount has the potential to grow with compound interest” said Boozer.
To enter a child born in May 2017 in the 5/29 promotion, please visit AL529Day.com.
For information on how to open an account, please visit CollegeCounts529.com. To learn more about CollegeCounts, the investment objectives, risks and costs, read the Program Disclosure Statement available online here.