Setting Your Child Up for Success with an Alaska 529 Account!
Alaska 529 and Alaska Children’s Trust are proud to partner together to ensure healthy futures for children, youth, and their families and set them up for long-term success. For 24 years, Alaska 529 has successfully broken down financial barriers, promoted college and career readiness, and supported a skilled workforce by offering residents an accessible and successful 529 education savings plan.
What is a 529 plan?
It is a tax-advantaged investment account used to save for future education expenses. Funds deposited into the accounts grow tax-deferred, and withdrawals are free of federal income taxes when used to pay for eligible education expenses.
Here are Alaska 529’s goals:
1. Break Down Financial Barriers: Alaska 529 helps families plan and save early to reduce the financial burden of college, trade school, and other educational pursuits. Saving early and often can reduce the need to incur and pay off debt in the future.
2. Encourage College and Career Confidence: Families that plan and prepare for a child’s future education set clear expectations that higher education is achievable and is an important part of the future. This can also motivate students to work harder in school. Studies have shown that when kids know they have a dedicated education savings account, even if it has as little as $50, their likelihood of pursuing education and training after high school increases dramatically.
3. Support Many Paths: In addition to college and graduate school, Alaska 529 accounts can be used to cover expenses in an array of programs that align with Alaska’s varied career paths and workforce demands. Students may also use accounts to cover vocational studies and expenses associated with trade schools. Eligible expenses include tuition, lodging, meals, and other costs associated with the programs.
4. Offer Flexibility and Accessibility: Families can open an account for as little as $25 and receive incentive contributions sponsored by Alaska 529 totaling $350, just for opening and funding an account with recurring contributions. Families can also invite friends and family to contribute to an account using the UGift gifting tool. Most Alaskans are familiar with the Alaska 529 question on the PFD application as well, offering residents the option to automatically fund an account with the annual windfall. These generous and convenient benefits of Alaska 529 make saving for future education accessible to all residents, regardless of income level.
While thousands of Alaska families are investing in 529 accounts for their children, many are not. We are available to present at your meetings or your schools. We can provide informational materials to distribute to families. We can send you promotional items to share at your community events. Help us create an Alaska where all children have an investment in their name and a future full of possibilities.
Please visit Alaska529plan.com, call (907) 474-5671, or email Alaska529@alaska.edu for more information. We look forward to working with you!
