Q. How will my employer match, with 5%, my 529 savings?
A. First you must register a child who has not completed 10th grade, with SAGE Scholars.  Then you must open a 529 account through College Tuition Benefit or roll money into a 529 plan offered through College Tuition Benefit.

College Tuition Benefit will receive a copy of your June 30th 529 account statement and calculate 5% of the balance.  This amount will be transmitted on behalf of your employer to SAGE Scholars and added to your scholarship fund balance.

In this way your contributions and earnings are multiplied when you attend a SAGE Scholar Institution.

Q. What is a 529 Plan?
A. A 529 plan is one of the best ways to save money for your children or grandchildren's post high school education. 529 refers to the section of the tax code that allows you to put after tax money in investment accounts of your choosing. Like a 401(k), the money grows on a tax deferred basis. When your child or grandchild has qualified educational expenses, you can draw down on the account to pay for those expenses, without paying taxes on the gain.

529 plans are sponsored by states, but you do not have to be a resident of a state to invest in that state's plan and money invested in one state's plan can be used to pay for educational expenses associated with schools in other states.


Q. What are the tax benefits of 529 Plans?
A. While the money you put into a 529 plan is after-tax money, like a 401(k) it grows tax deferred. In fact, under current tax law, the money you have put into the plan, and the investment gain, is tax-free if used for qualified educational expenses.  Some states even offer a tax deduction for residents who invest in their resident state's plan.

There are also gift and estate tax advantages to 529 plans.


Q. What are the investment benefits of 529 Plans?
A. Each state offers a range of investment options and investment styles from different national investment firms. Through College Tuition Benefit you have the opportunity to review many different investment approaches and investment companies.

Some states offer investment funds that consider the age of your child and period of time remaining until college begins. Other states give you the opportunity to build your own portfolio. We invite you to review the different options and decide what is best for you.


Q. How much should I put in a 529 Plan? [Try our calculators]
A. Like any other savings program it is a balance between how much you need to save and how much you can save. While paying for college is a stretch, money that isn't saved for college can cost you more if it needs to be borrowed. The College Tuition Benefit website provides useful calculators to determine how much you should save to meet education funding goals.


Q. What states' 529 Plans are available to me through The College Tuition Benefit?
A. Through CollegeTuitionBenefit.net your employer is providing 529 plans from many states. In theory the law allows you to invest in any state you wish. College Tuition Benefit believes the programs available here are a good sampling of the type of plans and investment styles available from leading national investment firms.  Note some states provide their residents with state income tax and other incentives when they invest in their resident state plan.  We have a handy comparison chart you can use to check this.


Q. How will my contributions go into my 529 accounts?
A. College Tuition Benefit will make arrangements to have whatever monthly amount you wish automatically deducted from your checking account through ACH transfer. In this way your program continues to be funded no matter where you work. You are always able to make additional contributions directly to the investment company.

An added benefit of this checking account debit program is that it allows your spouse and your children's grandparents to visit CollegeTuitionBenefit.net and open accounts for your children.


Click here if you would like to see more frequently asked questions.
Click here if you would like to learn more about the specific state investment accounts.