Savings Day with Matching Promotion for New Accounts
May 29 is National 529 College Savings Day, and the Oregon College Savings Plan is marking the event with a four-day matching promotion. Eligible individuals who open and fund an Oregon College Savings Plan account for a new beneficiary online at OregonCollegeSavings.com/529Day between May 26 and May 29, with an initial contribution of at least $25, will receive a matching $25 contribution.
A Gallup poll[i]indicates that seven in 10 parents worry about college funding; for parents of children under 18, having enough money to pay for college surpasses retirement as the top financial concern. National 529 Day serves to raise awareness to the benefits of investing in a 529 college savings plan.
“With the cost of a college education continually rising, it’s important that families of all income levels take the initial step of opening an account to begin the process of saving as much and as early as possible,” stated Michael Parker, executive director of the Oregon College Savings Plan. “Our matching promotion is an excellent incentive to get families started.”
The Oregon College Savings Plan is available to any U.S .citizen and offers a variety of low-cost investment portfolios to choose from, including age-based, multi-fund, single-fund and a guaranteed option. An account can be opened with as little as $25, and any earnings are federal and state tax-free. Oregon taxpayers can also benefit from a state income tax deduction against their contributions each year (limitations apply*). The Plan also offers certain gift and estate tax planning benefits (consult your tax advisor).
Withdrawals are tax-free at both the federal and state level when used for qualified higher education expenses, which include tuition, required fees, certain room and board costs, books, supplies, computers and related technology costs, including Internet access fees, software or printers. Funds can be used at most accredited colleges and universities in the United States and certain colleges abroad.
Americans currently owe more than $1.4 trillion in student loan debt, spread out among just over 44 million borrowers[ii]. State sponsored 529 college savings plans, like the Oregon College Savings Plan, can play a critical role in helping families reduce the amount of money their children borrow while pursuing their higher education goals.
The Oregon College Savings Plan
The Oregon College Savings Plan, which is part of the Oregon 529 Savings Network, launched in January 2001 and has grown to more than $1.5 billion in assets as of March 31, 2017. The Plan is managed by TIAA‐CREF Tuition Financing, Inc. For more information about the Oregon College Savings Plan, its investment options and how to enroll, visit OregonCollegeSavings.com or call toll free 866‐772‐8464. Follow the Oregon College Savings Plan on Facebook.com/OregonCollegeSavings and Twitter.com/OregonCSP; all social media platforms are managed by the State of Oregon.
*To learn more about the Oregon College Savings Plan, its investment objectives, tax benefits, risks, and costs please see the Disclosure Booklet at OregonCollegeSavings.com. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss.
If the funds aren’t used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Taxpayers should seek advice from an independent tax advisor based on their own particular circumstances.
TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distributor and underwriter for the Oregon College Savings Plan.
[ii]https://studentloanhero.com/student-loan-debt-statistics/
