Open a new Florida 529 College Savings Plan during the 529 Summer Jump-Start Promotion to get up to $50 seeded into your account. This post is brought to you by Florida Prepaid College Plans. All opinions are my own.
Summer is seriously flying by, and before we know it, it’s going to be back to school time again!
I’m not exactly ready for everything that goes with back to school, but I do have one element of my daughter’s education on my brain— college!
She still has a bit to go before she starts applying for schools, but I can’t stop thinking about college savings, specifically, if we’ll have enough for when the time comes for her to start university.
If you’re a regular reader of my blog, you know how much I support Florida Prepaid and its college savings plans. If you have one, you’re on the right track for saving for your child’s future education.
But in addition to Florida Prepaid, there is a plan called the Florida 529 College Savings Plan that can be used alone or in addition to Florida Prepaid. The rules are also more relaxed, making it an excellent option for families who want to start saving for college RIGHT NOW.
Reasons to Choose a Florida 529 College Savings Plan
You can sign up for a Florida 529 Savings Plan any time of the year
Unlike Florida Prepaid, which has an open enrollment period each year, you can open a Florida 529 Savings Plan at any time.
The Florida 529 Savings Plan has no application fee or minimum monthly contribution
Families can save what their budgets allow with the Florida 529 College Savings Plan. Obviously, the more you put in, the more you will save for your child’s higher education, which is why it’s a good idea to consider automatic monthly contributions. The good news is that monthly contributions can be as low as $25 — every little bit helps!
You don’t need to be a Florida resident to open a Florida 529 Savings Plan
This is where the Florida 529 Savings Plan has more flexibility than a Florida Prepaid College Plan— you don’t have to be a Florida resident to open an account. This is great for grandparents or other family members who don’t live in the state of Florida but still want to help with your child’s higher education.
Florida 529 Savings Funds may be used tax-free to pay for ANY qualified higher education expense nationwide
A Florida 529 Savings Plan can be used to pay for any qualified higher education expense as defined in Section 529 of the federal tax code, including tuition, fees, room and board expenses, textbooks, supplies and special needs services incurred in connection with enrollment or attendance.
This also means your child does not need to attend a college in the state of Florida to use funds in their Florida 529 Savings account— funds can be used at ANY college nationwide.
The Difference Between Florida Prepaid and the Florida 529 Saving Plan
The Florida 529 Savings Plan is an investment plan, and unlike a Prepaid Plan, the Florida 529 Savings Plan is not guaranteed by the State of Florida and is subject to fluctuations in the financial markets.
As with any investment, there is some risk, but it’s important to know that the Florida 529 Savings Plan has been recognized as a Top 10 performer among direct-sold 529 plans for 10-year investment performance in Savingforcollege.com’s latest quarterly performance rankings. Plus, each investment management firm is constantly monitored.