With Father’s Day fast approaching, you may be wondering, “What do you get for the man who has everything?” As the father of three adult children, I’ve been gifted many a Father’s Day tie, mug or pair of socks, and I still smile at the thought of my kids’ proud faces as I unwrapped their carefully chosen presents. This year, though, I’m challenging my readers to think outside the box and consider another kind of gift entirely: the gift of college savings. Here’s why.
A 529 Plan contribution makes a thoughtful Father’s Day gift for the special dads in your life
As college costs continue to rise, many parents are turning to 529 plans to save for their children’s education. But unlike other types of savings plans, it’s not just the account owner who can fund a 529 plan. Anyone can contribute to a 529 plan, with no contribution minimums or income restrictions.
What else makes 529 plans a great Father’s Day gift option? Consider this:
- Unlike a cash gift or check, the 529 plan account owner retains total control of the money you contribute. He or she determines how and when your gift will be withdrawn from the 529 plan account to pay for college expenses, so you can rest easy knowing it will go exactly where you want it to go.
- 529 Plan beneficiaries can be updated to another family member with no federal or income tax implications. So, if you contribute to a family’s 529 plan and their first child earns a scholarship, they could simply reassign the 529 plan’s beneficiary to another child or relative — and your gift could still help the family cover the costs of higher education.
- 529 plans cover more than just college. In some states, 529 plan withdrawals can be used to pay for eligible K-12 tuition — not just traditional college costs. Talk about a win-win!
This Father’s Day, why not help the fathers in your life take another step closer to reaching their college savings goals by contributing to a 529 plan in their name?
Ready to learn more about the potential benefits of 529 plans? Visit CollegeBound529.com to explore helpful resources and tools to plan your own education savings strategy.
Before you invest, consider whether your (or the beneficiary’s) home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program.
For more information about CollegeBound 529, contact your financial advisor, call 877-615-4116, or visit http://www.collegebound529.com/ to obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing. Invesco Distributors, Inc. is the distributor of CollegeBound 529.
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