Consumers can also front load contributions
Los Angeles-Long Beach, CA (PRWEB) December 08, 2016
National Debt Relief recently shared in an article published November 26, 2016 some of the benefits consumers can expect when they take out a 529 plan.The article titled “529 Plans — The Gift That Keeps On Giving For A Lifetime” explains how the fund can be a great gift for loved ones especially as the holiday season approaches.
The article starts off by pointing out that the Christmas season is fast approaching and a lot of people are on the lookout for the best gift ideas can give their loved ones. While most people would be quick to look at gadgets, one idea the article shares to consumers is for them to get a 529 plan.
The article explains that this is a tax-advantaged plan designed to help people in planning for their future educational expenses. This is a great idea as a gift by parents and even grandparents for their children and grandchildren. The reason it is called a 529 plan is because it is authored under Section 5290 of the Internal Revenue Code.
Gift givers have a couple of options to choose from when it comes to their 529 plans. The article explains that the investment can be used in a bond fund, a stock fund and even an equity index 500 fund. The article also points out that most people prefer to choose the age-based plan which allows them to be more conservative with the investment as college time for the fund user comes closer.
The article also shares that consumers who decide to take out a 529 plan for a loved one can start an account with a very small contribution. The good thing about it is that other people can easily contribute to the fund as well. Consumers can also front load contributions allowing them to put in as much as five times the annual limit for the plan in one go.
To read the full article, click https://www.nationaldebtrelief.com/529-plans-keep-giving-entire-lifetime/