Saving for college has never been so easy
With so many ways to contribute to your account, you can use several to help save toward your college savings goal. Once you’ve opened your NC 529® account, you can choose whether to:
Set it and forget it:
- Scheduling automatic drafts from your bank account to your NC 529 account.
- Requesting automatic monthly payroll deductions to your account if your employer offers this benefit.
Give whenever fits your budget by:
- Electronic funds transfer.
- Wire transfer.
- Rollover from another qualified tuition program.
- Transfer from a Coverdell Education Savings Account.
- Transfer from a qualified Savings Bond Series EE or I, issued after 1989.
- Transfer from an UGMA/UTMA custodial account.
The minimum contribution is only $25. The maximum that can be contributed per beneficiary for 2016 is currently $420,000, but may be adjusted annually.
The person opening the NC 529 Account, the “participant” is the account owner and maintains control of how and when assets are used for the beneficiary. Other family members and friends can make contributions to the participant’s account if the participant shares the account number. Once these contributions are in the account, the account owner makes decisions on how to use the funds for the beneficiary’s college future.
The Power of Compound Interest
Starting to save early and on a regular basis can have a positive effect on your financial stability. When you reinvest interest earned on your savings, you compound your interest because you earn interest on the interest. And with an account in the NC 529 Plan, your earnings are free from federal and North Carolina income taxes when used to pay for Qualified Higher Education Expenses.