If you’re a new parent, they say it’s never too early to begin saving for your child’s education and the START Saving Program through the Louisiana Office of Student Financial Aid allows you to do so with a few advantages. Director of the START Program, Terri Underwood said it’s open to residents or beneficiaries who live in Louisiana.
“And there’s also state matching funds. The state matches a portion of deposits as well as a Louisiana income tax deduction on deposits,” said Underwood.
The Louisiana 529 savings plan has been around since 1997.
The initial deposit for the savings program is only $10, and Underwood said after that there’s no minimum required for each month. The maximum a beneficiary can have on deposit with START is $500,000.
“The tax deduction works where if you’re a joint filer and you paid Louisiana income tax, you can deposit up to $4,800 per year and claim that on your Louisiana tax return,” said Underwood.
Or if you’re a single filer you can save up to $2,400 a year by claiming it on your Louisiana return.
In addition to a tax break and matching funds, Underwood said the savings program offers compound interest on the investment.
“There are earnings to be made as well in addition to the state matching funds,” said Underwood.
Underwood said while TOPS does not cover all college expenses, the long-term investment of a START Saving Program helps parents meet those additional expenses.
There’s also a START K12 Saving Program to help families with tuition-related expenses to eligible Louisiana schools.
For more information visit mylosfa.la.gov
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