A 529 plan is a financial tool that enables families to save aside money for their children’s college expenditures. It is called after Internal Revenue Code Section 529, which created the plans in 1996. Prepaid tuition programs and college savings plans are the two primary categories of 529 plans. Both kinds of insurance are available to Louisianans.
The state’s 529 plan is called the Louisiana Student Tuition Assistance and Revenue Trust (START) Savings Program. The START Saving Program and the START Saving Program (Direct) are the two options it gives families. Financial advisors sell the START Saving Program, which is administered by Louisiana’s Office of Student Financial Assistance. The START Saving Program (Direct), which is run by the state treasurer’s office, is sold directly to customers.
You need a Form 529 to start an account with a 529 plan. A Form 529 is available via a financial advisor or the plan’s website. The form will ask for details about the beneficiary (often the child who will use the funds), the account owner (typically a parent or grandparent), and the investment alternatives you want to pick.
You can contact the toll-free number on the program’s website or go to the website to open an account with the Louisiana START Saving Program. The account owner and recipient must enter personal information, select an investing option, and make an initial donation (which can be as little as $10). You can look for a financial advisor on the plan’s website if you’d prefer to work with one. What exactly is a successor owner? If the primary account owner passes away or becomes incapable of managing the 529 plan account, a successor owner may take over. When the account is started, this person can be named on the Form 529, or they can be added later. In the event that the original account owner is unable to administer the account, it is crucial to select a successor owner to guarantee that the funds are used for their intended purpose.
Creating a 529 plan is, thus, a wise investment in your child’s future education. You can contribute to making sure that your child has the resources required to attend college without having to rely on student loans or other types of debt by picking the appropriate plan and investing alternatives. Consider the START Saving Program as a potential alternative if you reside in Louisiana, and make sure to name a successor owner to safeguard your investment.