Saving for college is one of the many goals on the minds of parents and Florida provides several options to residents seeking to save for educational goals. The Florida Prepaid Tuition Plan offers a simple way to save by prepaying the cost of education at a public school in Florida. However, parents seeking more flexibility for their child’s education may wish to instead invest in the Florida 529 Savings Plan.
Who Can Invest?
Anyone may open a Florida 529 Savings Plan on behalf of a beneficiary.
How Much Can I Invest?
The minimum opening investment is $250 if you make a single deposit or $25 if you sign up for automatic monthly contributions. There is a very high limit on the maximum account balance that a beneficiary may maintain – the total of all accounts for an individual may not exceed $418,000.
How Can the Money Be Used?
The funds saved in a Florida 529 Plan may be used for any legitimate educational expenses associated with attending an institution of higher education. This includes tuition, fees, room and board and textbooks. The funds may be used for undergraduate or graduate education at any higher education institution in the country. Use of 529 funds is not limited to schools in the State of Florida.
What if the Beneficiary Doesn’t Attend College?
If the beneficiary of the plan does not use all of the funds or does not attend college, the account owner may transfer the funds to a member of the beneficiary’s family or request a refund.
There are tax consequences to refunds, so you should consult a tax advisor before making this move.
Are There Tax Advantages to a 529 Plan?
Yes, the earnings on a 529 plan account are not taxes when they are used for qualified higher education expenses. If you withdraw the money for other purposes, there are tax consequences which you must consider. In that situation, you should consult a tax professional before making any moves.
How Do I Open An Account?
You may complete an enrollment application online and begin investing immediately in a Florida 529 Plan account.
How is the Money Invested?
You may choose from a variety of investment options. The plan offers age-based portfolios that automatically reallocate your investments as a child gets closer to college. It also allows you to select your own mix of investment funds if you prefer.
What Are the Fees?
There is no fee to set up an account or make contributions or withdrawals. The 529 account fee is deducted from the earnings of the account and is set at 0.75% for most investment options. The fee is lowered to 0.10% for accounts invested in the Money Market option.
Who Can Invest?
Anyone may open a Florida 529 Savings Plan on behalf of a beneficiary.
How Much Can I Invest?
The minimum opening investment is $250 if you make a single deposit or $25 if you sign up for automatic monthly contributions. There is a very high limit on the maximum account balance that a beneficiary may maintain – the total of all accounts for an individual may not exceed $418,000.
How Can the Money Be Used?
The funds saved in a Florida 529 Plan may be used for any legitimate educational expenses associated with attending an institution of higher education. This includes tuition, fees, room and board and textbooks. The funds may be used for undergraduate or graduate education at any higher education institution in the country. Use of 529 funds is not limited to schools in the State of Florida.
What if the Beneficiary Doesn’t Attend College?
If the beneficiary of the plan does not use all of the funds or does not attend college, the account owner may transfer the funds to a member of the beneficiary’s family or request a refund.
There are tax consequences to refunds, so you should consult a tax advisor before making this move.
Are There Tax Advantages to a 529 Plan?
Yes, the earnings on a 529 plan account are not taxes when they are used for qualified higher education expenses. If you withdraw the money for other purposes, there are tax consequences which you must consider. In that situation, you should consult a tax professional before making any moves.
How Do I Open An Account?
You may complete an enrollment application online and begin investing immediately in a Florida 529 Plan account.
How is the Money Invested?
You may choose from a variety of investment options. The plan offers age-based portfolios that automatically reallocate your investments as a child gets closer to college. It also allows you to select your own mix of investment funds if you prefer.
What Are the Fees?
There is no fee to set up an account or make contributions or withdrawals. The 529 account fee is deducted from the earnings of the account and is set at 0.75% for most investment options. The fee is lowered to 0.10% for accounts invested in the Money Market option.
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