Partner Spotlight: The Education Plan
Back-to-School Savings Start with a 529 Plan – The Education Plan®
As families wind down their summer and prepare for a new school year, they’re often focused on buying supplies, getting school clothes and arranging schedules. It’s also the perfect time to start planning for future, and even near future education expenses with The Education Plan®, New Mexico’s direct-sold 529 education savings program, administered by the state’s Education Trust Board.
One of the biggest advantages of a 529 plan is its flexibility. For over thirty years, people associated these accounts with college savings, but today’s 529 plans can be used for wide range of qualified expenses. In addition to higher education costs such as tuition,
books, housing, and required supplies, families can also use up to $20,000 per year, per student to pay for private K-12 expenses, including tuition. That means a 529 with The Education Plan can start supporting a child’s educational journey starting as early as kindergarten.
Back-to-School can take on diƯerent forms. A 529 can be used for trade schools and apprentice expenses. Also, professional education expenses such as continuing education, accreditation and licensure are now qualified uses for a 529 savings plan.
New Mexico residents also enjoy significant state tax benefits. Contributions to the state sponsored 529 account can be deductible from New Mexico state taxable income, with no annual deduction limit for contributors. Combined with tax-free growth and tax-free withdrawals for qualified educational expenses, these savings can add up over time and help families maximize every dollar they invest in education.
So, welcome to the Back-to-School season! Learn more on how a 529 with our state’s The Education Plan® can do more for you and your family by visiting our informative website theeducationplan.com Here you can also open an account and set up automatic deposit
in less than 15 minutes.
Click here to read more articles about 529’s and The Education Plan.
This article is part of a branded content partnership with The Education Plan and does not constitute an endorsement by GAMA. Views expressed are those of the author.
The Education Plan®
Offered by The Education Trust Board of New Mexico, The Education Plan® is New Mexico’s official direct-sold 529 education savings plan.
A 529 education savings plan is designed to help families pay for a lifetime of learning, from K-12 tuition and apprenticeships to college, credentialing, and beyond. Money in a 529 education savings plan has tax advantages, is professionally managed, and may benefit from the power of compounded growth.
The Education Plan allows you to open a tax-advantaged account directly and choose from a variety of investment options designed to meet your needs, situation, and risk tolerance.
The New Mexico Education Trust Board is the governing body for New Mexico’s 529 college savings programs. The board is administratively attached to the New Mexico Higher Education Department. Members are appointed by the Governor, Senate Pro Tem, and Speaker of the House of Representatives.
The board is responsible for making rules and regulations for the development and implementation of the Education Trust Act.
