DSA offers 529 college savings

The DSA has teamed up with LPL Financial Services and American funds to offer you College America. College America is a tax-advantaged savings program designed to help pay for higher education.

College America is a 529-college savings plan that can help you build a nest egg for college. The plan, named after a section of the tax code, was created by Congress to offer significant tax advantages to those who want to invest for higher education costs.

The following is a summary of the main advantages of the College America 529 Plan:

Any earnings will be free from tax

• Withdrawals for qualified higher education expenses are free from federal tax
• You control your account and decide when withdrawals will be made
• You can open an account for anyone including your children, grandchildren, spouse, or even yourself!
• You can use your assets to pay for college, graduate school, or even technical training
• You are investing as part of a group. So you don’t pay the initial sales charge that individuals often face. All of your money goes to work immediately
• You have a choice of 21 American Fund mutual funds

How do you get started? It’s easy! Complete this questionnaire and mail to Don Falorio at LPL Financial Services. Don will mail back to you the documents to establish your plan. Each month, or as often as you request, your contribution will be transferred from your checking or savings account and invested in the funds you choose.

You can use the college cost calculator on the American Funds website to calculate the estimated cost of college based on the child’s age, and which accredited college they may attend.

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