Oregon State Treasurer Ted Wheeler has a suggestion that could pay dividends: Help pay for somebody’s education with a contribution though the Oregon College Savings Plan.
The popular plan allows families to invest to help pay for an array of higher education costs, from tuition to books to room and board. At the same time, those who make contributions can qualify for tax benefits such as a deduction worth as much as $4,180 a year from Oregon income taxes and the annual federal gift tax exclusion.
“Education is the gift that will keep on giving,” said Treasurer Wheeler, who is the chairman of the Oregon 529 College Savings Board. “What better way to celebrate the holidays than to give a gift of a better future?”
Oregon College Savings accounts can be started for $25 and additional contributions can be as little as $25. Any investment gains are both state and federal tax-free.
In addition, the Oregon 529 College Savings Board improved the plan substantially in 2010 with new diversified investment options and lower fees, which will help to stretch dollars further and allow families to invest with confidence. Starting this year, those choices include a socially responsible fund and a “principal protected” option that’s designed to protect the principal investment and guarantee an annual return.
There is no age limit for a beneficiary of an Oregon 529 College Savings Account, so you can help a child save for education that’s years away, or help pay to send an adult to college today. The savings can be used for qualified expenses at higher education institutions nationwide.
Anybody who is 18 or older can open and contribute to a college savings account – including aunts and uncles, brothers and sisters, and even friends – and you don’t need to live in Oregon to give. Only Oregon taxpayers qualify for the Oregon tax deduction for contributions. In addition, gifts through the Oregon 529 College Savings Network can reduce the value of an estate under the annual federal gift tax exclusion.
Visit http://www.oregoncollegesavings.com/news/gift.shtml to learn more about giving a gift of education, and even to print off holiday certificates.
The Oregon 529 College Savings Network has rebounded strongly since the market malaise of early 2009. Because of better performing markets and new contributions, the combined value of the investment accounts in the system now exceed $1.2 billion – a record for the Oregon-sponsored plan.
Families have two paths to save: They can start accounts and invest on their own in the Oregon College Savings Plan or can use the services of investment advisors and choose portfolios administered by MFS Investment Management.
The Oregon College Savings Plan is administered by TIAA-CREF Tuition Financing Inc.
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