Children begin learning from those around them from the moment they are born, and they learn through repetition. When it comes to saving for college, it pays to start early and make repeat contributions. Even though whomever you are saving for may not attend school for many years, the best time to get started is right now.
SMART529 Select features different plans and investment options, so you can choose the one that’s right for you. Get started today with as little or as much as you are comfortable. There are no application fees or sales charges, so 100% of your investment goes to work immediately.
- The account holder maintains control of the account - even once the beneficiary reaches the age of 18.
- Withdrawals for qualified higher education expenses1 are free from federal income tax, as well as West Virginia personal income tax.2
- Payroll Direct Deposit and the Automatic Investment Program are available to help keep savings plans on track.
- Contributions made by December 31st each year can be used as a modification, reducing your federal adjusted gross income for West Virginia personal income tax purposes (deductions are subject to recapture if distributions are non-qualified).
Giving your grandchild the gift of higher education may also help you reduce your estate and save on estate taxes. If a third party is the designated beneficiary on your SMART529 Select account, the value of the account will not be included in the donor’s estate for estate tax purposes. The only exception would occur if you are spreading a gift out over five years for gift tax purposes, in which case the gifts allocable to periods after your death are included in your estate.
Anyone can contribute up to $17,000 per year ($34,000 for married couples filing jointly) to a beneficiary's SMART529 Select account without gift-tax consequences. Contributions may be accelerated up to $85,000 ($170,000 for married couples) once per 5-year period without incurring federal gift taxes.3