Tags: Retirement | New Hampshire | 529 plan | savings | education

Facts about New Hampshire's 529 Plans

By    |   Thursday, 21 May 2015 11:14 PM

Young people who have college savings plans, like the 529 plan offered by New Hampshire, are seven times more likely to attend college than someone without such a plan.

That determination by the Center for Social Development at Washington University highlights the importance of saving for a post-high school education. As education costs rise, New Hampshire residents are looking for ways to raise funds for their children, grandchildren, and friends.

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The state actually has two 529 savings plans that can help pay for post-secondary education. The first, according to the state’s treasurer, is the Unique College Investment Plan. The other plan is the Fidelity Advisory 529 Plan.

Distributions from the plans can be used to pay for tuition, books, and fees, as well as some room and board expenses, reports the Internal Revenue Service.

Many people believe that 529 plans are only for investors who are saving for educational benefits to be used by family members. The IRS, however, said anyone can invest in a 529 plan and name anyone as the beneficiary. Here are a few other facts from the state's website about New Hampshire’s 529 plans to help people take advantage of potential savings:
  • In order to encourage people to choose one of New Hampshire’s plans, the state provides special benefits to people who invest in them, including a low start-up cost of only $50 and monthly contributions as low as $15 if done with an automatic payment plan. There is no annual administration fee for the plan, either, the state website said.

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  • Like many states, residents of New Hampshire can take advantage of tax breaks on monies put into the plan; income from the plans is exempt from both federal and state income taxes. Additionally, investors can contribute into the plan until the balance reaches $350,000.
  • Another benefit, one not typically found in plans from other states, is the ability to earn two percent back on purchases made with an American Express card on eligible purchases and with no annual limit. Taking advantage of the ability for multiple people to contribute to a 529 plan, friends and family members that use American Express can also have their rewards points go to a single 529 recipient or to multiple recipients if desired.
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Young people who have college savings plans, like the 529 plan offered by New Hampshire, are seven times more likely to attend college than someone without such a plan.
New Hampshire, 529 plan, savings, education
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2015-14-21
Thursday, 21 May 2015 11:14 PM
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