Delaware has seen a near doubling of saving for higher education with DE529 Education Savings Accounts according to State Treasurer Colleen Davis.
More than 1,400 new DE529 accounts were opened through June, a number that’s 41% higher than during the same time last year.
“As the cost of college and trade school continues to rise, it has become more crucial than ever for families to plan for their children’s future,” said Davis. “Our office is proud to sponsor the DE529 Education Savings Plan, which provides tax-advantaged accounts designed to help parents, grandparents and others pay for higher education expenses.”
Managed by Fidelity Investments, money in a DE529 account grows on a tax deferred basis, and withdrawals for qualified expenses like tuition, fees, and books are free from federal and Delaware income.
In addition to making the plan available, the Office of the State Treasurer (OST) and the Plans Management Board, the group that directs and serves as trustees of the money invested in the plans, credit the First State, First Steps incentive program with boosting enrollment.
“Through the first half of the year, 361 new DE529 accounts qualified for the First State, First Steps incentive which makes a $100 contribution to eligible accounts,” Davis said. “If the beneficiary is five years of age or younger and a Delaware resident at the time of account opening, the DE529 plan will add the contribution to every new account opened with an initial deposit of at least $100.
For more information on the DE529 Education Savings Plan and the First State, First Steps program, visit529.delaware.gov.