TENNESSEE VALLEY (WHNT) - You could spend the last few hours running from store to store to finish buying Christmas gifts, or you could just pull out your checkbook. Have you considered making a contribution to your child's college fund?
"If you're wanting to save for college for your children, the 529 plan, particularly Alabama's 529 plan is really beneficial," said Paul Lindgren, a CPA. "The money that you put into the 529 plan will grow tax-free."
A donation to a child's future through the 529 plan can be made by parents or other relatives and friends. Another bonus: your donation is tax-deductible.
"My own nephew has a 529 plan and I actually contribute to his 529 plan toward the end of the year as a Christmas present to him," said Lindgren. "Of course, it has the added benefit to me as a tax deduction on my Alabama tax return."
This Christmas, a donation to 529 is truly a gift that keeps giving.
"If we're able to graduate students here in Alabama and provide a financial subsidy or a financial incentive to do so then it's all the better for Alabama's workforce," said Lindgren.
Learn more about CollegeCounts, Alabama's 529 plan. If your child or a child in your life has an account, you can make a donation by mail or over the phone by calling (866) 529-2228. Contributions must be made by December 31, 2014 in order for it to be used on your taxes due next April. There are also links on the website to create an account.