Don't miss the 12/31/13 contribution deadline for 2013 RI State Income Tax Deduction for CollegeBoundfund
December 12 2013 (PROVIDENCE, RI) – With the end-of-the-year around the corner, it’s a good time for Rhode Island families to review their financial plans and ensure they embracing every opportunity to save for their children’s college education expenses. It’s not too late for families to open a CollegeBoundfund account and take advantage of the program’s valuable benefits.
“This time of year, Rhode Islanders are in search of holiday gifts for the children in their lives,” said General Treasurer Gina M. Raimondo, who has CollegeBoundfund® accounts for her two young children. “Contributing to a CollegeBoundfund may be a great option for Rhode Islanders who want to help a child pursue their educational goals.”
With a CollegeBoundfund account, Rhode Island’s tax-advantaged 529 college savings plan, Rhode Islanders have a powerful tool to combat the rising cost of education and be more financially prepared when their children attend college.
By investing in the program, Rhode Islanders receive valuable benefits, including:
- A state tax deduction of $500 (individual) or $1,000 (joint filer) for CollegeBoundfund contributions made by account owners by December 31, 2013.
- Low investment fees and low minimum contributions
- Waiver of annual account maintenance fees
- Automatic deductions from direct deposit paychecks or automatic contributions from checking or savings accounts.
- An online gifting tool option, which offers a secure way for friends and family to contribute to existing accounts
- The CollegeBoundbaby program, which provides every baby born to or adopted by a Rhode Island family a $100 contribution when a CollegeBoundfund account is set up before the child’s first birthday.
It is never too soon for Rhode Islanders to begin planning. To date, 42 percent of existing CollegeBoundfund beneficiaries in Rhode Island are under the age of 10, which shows that many families understand the benefit of starting to save early in a child’s life.
“Now is a great time of the year for families to reflect on how they are managing their overall finances and planning for their child’s educational future,” says Gail Mance-Rios, Acting Executive Director of the Rhode Island Higher Education Assistance Authority (RIHEAA). “It’s important to save early and often for a child’s higher education – not only for the child’s future, but also for Rhode Island’s future.”
Treasury, RIHEAA and the State Investment Commission (SIC) are constantly monitoring and improving the CollegeBoundfund program. The SIC recently approved the following actions:
- Replacing a number of individual mutual funds
- Creating a new, low-fee passively managed age-based glide path at the lowest-cost available for Rhode Island residents
CollegeBoundfund is a Section 529 qualified tuition program designed to encourage saving and investing for a child’s future higher education expenses. The Office of the Rhode Island General Treasurer oversees the plan’s investments, which are managed by AllianceBernstein, and sponsored by RIHEAA. For more information, please visit www.collegeboundfund.com/ri or call (888) 324-5057.