September is College Savings Month in NC

RALEIGH, N.C., Sept. 3 /PRNewswire-USNewswire/ -- North Carolina's 529 college savings program today joins other states and the College Savings Plan Network in declaring September College Savings Month. This nationwide focus is an effort to emphasize the importance of saving for higher education by families with children in kindergarten through high school.
"As students settle into a new school year, September is a great time for families to think about how they will pay future college expenses," said Shera Hube, vice president for marketing and savings at College Foundation, Inc. "With the low-cost, tax advantages, and variety of investment options offered in North Carolina's 529 Plan, this is the time to open an account or to increase your contributions to an established account."
Starting an NC 529 account requires as little as a $25 investment and you may make regular or periodic contributions based on your financial situation and your preferences. Money can be used for qualified higher education expenses at almost any four-year or two-year college, in-state or out-of-state.
NC taxpayer contributions to a NC 529 account of up to $2,500 for individuals ($5,000 for joint filers) per year are currently eligible for a state tax deduction. For example, according to financial planner Holly K. Nicholson, CFP, a married couple filing jointly with income of $75,000 and contributing $5,000 (including roll-overs from another 529 plan) to the NC 529 Plan may save as much as $350 in N.C. state income tax.
Investment choices include age-based or individual options with funds available from The Vanguard Group, NCM Capital Management Group, State Employees Credit Union (SECU) and the State Treasurer of North Carolina. The Federally-Insured Deposit Account from SECU is the newest option, added in April 2010.
During the past year, the number of NC 529 accounts has increased by 16.7%, according to College Foundation, Inc., the Program Administrator. In July 2010, there were 80,534 account owners with more than $606 million invested, a fund value increase of 34.5% over last July.
Go to CFNC.org/NC529 to learn more about North Carolina's 529 college savings plan, to enroll or to make a contribution. If you have any questions about the NC 529 Plan, call toll-free 1-800-600-3453.
Source: College Foundation, Inc.