This post was sponsored on behalf of Connecticut Higher Education Trust (CHET). As always, all opinions remain 100% my own.
I blinked. And Facebook kindly reminded me that our visit to her preschool… the one we made before we actually enrolled… really was 2 years ago. Her preschool graduation is in 2 weeks. Just writing that make my eyes well up! I know I will blink again and find myself watching her cross the stage at her high school graduation. The time passes so quickly: are you financially prepared for their future now? CHET 529 plans want to help you prepare and give you a jump start to save for your child’s future.
529 Plans for Your Child’s Future
College savings plans are a tax-advantageous way to save for your child’s future education. The Connecticut Higher Education Trust, also known as CHET, is Connecticut’s 529 college savings plan.
Don't blink! College is coming. Celebrate 529 Day with CHETWhat is CHET?
The state of Connecticut offers 529 plans via the Connecticut Higher Education Trust. CHET is open for investment by residents in any state. Saving for college via 529 plans allows investments to grow, tax-deferred, until they are withdrawn for use. And as long as they are used to pay for the beneficiary’s college costs upon withdrawal, they will remain federally tax-free. They work similarly to a Roth Retirement account or other IRA.
However, for Connecticut residents, there are even greater tax advantages for choosing CHET out of all the 529 plans out there. Contributions to CHET are deductible from Connecticut state taxes for up to $10K for joint filers and $5K for single filers annually. CHET is managed by the highly reputable TIAA-CREF Tuition Financing. Inc., a national college savings plan leader that manages ten state-sponsored 529 plans across the country.
CHET Baby Scholars
CHET Baby Scholars is a brand new initiative. The state of Connecticut wants every child to be able to go to college, and every baby born in the state is eligible for the CHET Baby Scholars program. Open your child’s CHET account before their first birthday, opt-in to CHET Baby Scholars, and CHET will automatically deposit the initial $100 into your account!
Did you have a baby in Connecticut this year? Get FREE $250 from CHET's Baby Scholars Program
Contribute an additional $150 by your child’s 4th birthday, and an additional $150 matching grant will be awarded. If you open the account with $175 – $25 account opening minimum plus $150, your full CHET Baby Scholar grant of $250 will be triggered. You can open your account and learn more about CHET Baby Scholars program here.
5/29 Day Celebration and Giveaway
This month, CHET is celebrating 5/29 Day! All month long, you can enter for a chance to win one of three prizes, all great investments for your child’s future! Grand prize is a $1,529 CHET contribution, and two runner-up prizes of a $529 CHET contribution. Enter at CHET 529 Day Giveaway.
Don’t blink – your children’s first day of college will be here before you know it. Have you started their 529 plans? Learn more about CHET and open your child’s 529 college savings plan today. To learn more about 529 plans, check out College Savings Plans 101. You might also enjoy my Financially Savvy Friday series, featuring financial savvy from this former hedge fund analyst.
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11 comments
[…] is the best account to save money for a kids’ college education. If you are unfamiliar with 529 College Savings Plans, it is the most tax-efficient way to save for future educational costs. All gains on funds in a 529 […]
[…] as you withdraw the funds to pay for school. You can learn more about college savings plans here, how specific 529 plans in your state may offer state tax benefits here, and a whole new type of 529 Plan, the Private College 529 Plan, that allows you to pay tuition at […]
[…] as you withdraw the funds to pay for school. You can learn more about college savings plans here, how specific 529 plans in your state may offer state tax benefits here, and a whole new type of 529 Plan, the Private College 529 Plan, that allows you to pay tuition at […]
[…] A 529 Plan is a savings account for college. You can contribute unlimited after tax dollars to the fund, which will accrue interest and capital gains tax-free. So long as the funds are used to pay for college, all earnings will remain tax-free. Some states, like our state of Connecticut, offer plans which allow state income tax credits to a state approved 529 Plan. Other college savings plan may offer matching programs for contributions during your baby’s first year of life. All the more reason to get it started early. […]
It’s so hard to think of college before kindergarten. But now that we are purchasing a house, saving up for college is the next step. Thanks for the reminder!
It’s crazy to think about it before kindergarten, but those first 5 years of saving, and the extra years of compounding, can make a big difference by the time they are 18!
What a great program and wonderful incentive to start saving early!
I know – it’s really great. And who can say no to FREE money!
Thanks for this! Saving is SO important and you have to start young!
Yep, the earlier you start, the better the ‘magic’ of compounding will work for you!
Great information – thanks for sharinG!