COLLEGE SAVINGS & 529 PLANS

Invest in Your Child's Future

A college education is one of the best investments you can make for your child’s future.

Education Planning and 529 Plans

The the high cost of college may alarm you — especially if you’ve waited too long to begin saving. According to the College Board, the average cost of tuition and fees for the 2019-2020 school year was $36,880 at private colleges, $10,440 for in-state residents at public colleges, and $26,820 for out-of-state residents attending public universities.

529 plans

529 plans are one of the most popular tax-advantaged college savings options. With 529 plans, your contributions grow tax deferred and earnings are tax free at the federal level if the money is used for qualified college expenses. States may also offer their own tax advantages. 529 plans allow individuals to invest in a predetermined pool of stock and bond investments. Most plans will require you to divide your investment according to a given asset allocation determined by your child’s age. In general, the asset allocation will be more aggressive for younger children and less aggressive for children nearing college age.
Once your child reaches college age, the account owner may withdraw money from the account to pay for qualified higher education expenses. Assuming that you have followed the plan’s rules, there will be no penalties (nonqualified withdrawals will be subject to a 10% additional federal tax in addition to ordinary income taxes). And qualified withdrawals are tax free.
If there is money left over in the account, the beneficiary designation can be changed to a sibling, first cousin or other family member (as defined by the Internal Revenue Code) of the original beneficiary without triggering gift taxes. Always consult with a tax professional for tax related issues.
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    Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC.). Insurance products are offered through LPL or its licensed affiliates. South State Bank, N.A. and South State Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using South State Investment Services and may also be employees of South State Bank, N.A. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, South State Bank, N.A. or South State Investment Services. Securities and insurance offered through LPL or its affiliates are:

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