September is National College Savings Month
As Delaware students settle into their school routines, Delaware State Treasurer and Chairperson of the Delaware College Investment Plan Jack Markell announced that Delaware will join with more than 40 states in celebrating National College Savings Month in September and urged Delaware families to save for their children's college education.
"The costs of higher education continue to climb and it's easy for parents to feel squeezed by these higher costs," Mr. Markell said. "As we celebrate College Savings Month, we want to raise awareness of the importance of saving for college and highlight some of the options and tools available to our Delaware families to begin saving."
There are a range of options available, including 529 plans, Coverdell Education Savings Accounts, and Roth IRA's among others.
The Delaware College Investment Plan, which is a 529 savings plan administered by Fidelity Investments. The plan provides professionally managed investments, high contribution limits, no income restrictions, and the ability for parents, guardians or grandparents to maintain control of an account specifically dedicated for college or accredited trade school expenses.
"I've always believed that 529 plans are a smart way to save," Mr. Markell said. "And because Delaware follows federal tax regulations, withdrawals from the Delaware College Investment Plan are completely tax-free for residents."
Currently there are over 25,250 accounts of families who participate in the Fidelity administered plan who have saved over $386 million for education.
The Office of the State Treasurer also recently launched a new website geared at assisting families as they prepare for college. The site, www.CollegeSavingsToolkit.com contains useful information for parents who are just beginning the process of saving and research tools to help them decide on the best avenue for them to save. The site contains detailed information on the 529 Delaware College Investment Plan and a special section "Which Plan is Right for Me." The website also has a downloadable College Savings Kit.
"There is so much information available to parents and it's our hope that our new website will assist in the decision making process," Mr. Markell said. "The most important thing to remember is that it's never too early or late to start, but to begin saving for your child's education today."
To learn more about saving for college visit www.Treasurer.Delaware.gov or www.CollegeSavingsToolkit.com.
