The Bank of America 529 plan is a student education investment plan according to the Section 529 of the Internal Revenue Code. The plan is also popular as the Future Scholar Education Savings Plan. The Bank of America 529 Plan is a tax-advantaged, qualified plan that is set up by adults for children under their care. Generally the plan is aimed for parents to plan future benefits for their children. The plan is applicable nationwide, though the rules and advantages are subject to the state where the plan accounts are set up.
There are three very distinct advantages of investing in a Bank of America 529 Plan.
1. The plan is one of the best options for funding college expenses for children as they grow. It is a good method of investing at current rates and then reaping benefits at the highly inflated rates that may prevail ten to fifteen years down the line, when the child is ready for college.
2. Adults look upon the Bank of America 529 Plan, and indeed all other such plans, as a method to get interesting tax deductions on their income. The Bank of America 529 Plan, specifically allows the investor to put in up to $12,000 individually, or $24,000 on a couple basis per year. This investment for the child's future is free of any federal gift taxes. In South Carolina, the plan is also free of state income taxes. This allows the financial assets to grow without the high deductions of tax.
3. The plan does not just help to fund college tuition fees like most education investment plans, but it also helps to pay for other education-related expenses. This includes accommodation, books, computers, joining libraries, etc. However, money taken out for non-educational requirements will no longer remain tax-deductible.
With a Bank of America 529 plan, you will have to work with a financial adviser who will help choose between the several portfolios where these plans can work with. The financial adviser is just an assistant and guide in the process; the direct relationship of the account owner with the beneficiary remains unaltered.
Like all other 529 Plans, Future Scholar Education Savings Plan also provides the possibility of changing the beneficiary at any time during the life of the plan. Thus, if the student gets a scholarship for the college, or simply wishes not to attend college, then someone else can be made the beneficiary of the plan, provided that this new beneficiary is related to the original one.
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Invest in your kids future. Start now at http://www.529planz.com 529 Plans Author: Kip Goldhammer
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