SANTA FE, N.M., April 2, 2024 (Globe Newswire) — Tax season is in full swing and with Tax Day on April 15 just around the corner, many people are hoping to get their tax refunds. . According to CNBC, the average federal tax refund for 2024 so far is about $3,145. For those looking to make meaningful investments for their future, setting aside some or all of their tax refund in a 529 education savings plan has many benefits.
“With inflation and rising prices on many items, including college tuition, now is a great time to save for tomorrow,” says the New Mexico Educational Trust, the organization that oversees The Education Plan®. said Natalie Cordova, executive director of the commission. “If you decide to invest money, such as the money you received from your tax refund, in a 529 savings plan, you can receive dividends for years to come.”
The amount saved can have a significant impact on a student's future success, as students with as little as $500 saved for college are more likely to attend. and graduate from university. Education Plan® allows families to start a 529 plan with no minimum initial investment, and compound interest can significantly increase 529 plan savings over time, especially if contributions are made early. In a hypothetical example, a family that invests just $150 a year in a 529 plan could earn about $10,000 more over 18 years compared to a traditional savings account.
“If possible, try to save money for the future,” Cordova added. “One of the best ways to ensure future financial success is to save for your education, which can pave the way for higher salaries and further advancement in your career. .”
As the cost of college and related expenses continue to rise, 529 plans offer a comprehensive solution to avoid the burden of student loans. According to CollegeBoard 2023, the average annual cost of a college education is close to $30,000, making 529 plans a valuable resource for families looking for ways to ease the financial burden of higher education.
Investing in a 529 plan not only helps families prepare for future education expenses, but also provides significant tax benefits. Many states provide a state income tax deduction for contributions to 529 plans. Additionally, funds invested in the plan grow tax-free, and funds withdrawn to cover qualified education expenses are also tax-free.
To learn more about The Education Plan®, visit TheEducationPlan.com.
CONTACT: Joanie Griffin The Education Plan 505-261-4444 jgriffin@sunny505.com
