Invest in your child’s future, use refund for a 529 Savings Plan
Consumers who want to put their tax refund to good use while getting the maximum value out of their investment may want to consider utilizing a Florida College Investment Plan, a 529 savings plan that is tax-exempt and can be utilized by in- and out-of-state residents.
Accounts for FCIP can be opened with a minimum initial deposit of $250 or an automatic bank withdrawal of $25 every month. Once opened, the account can be added to easily, and withdrawn from for qualified higher education expenses that include tuition, fees, room and board, and book costs at most accredited public or private colleges and universities.
The funds may also be used for either undergraduate or graduate programs.
USA Today financial reporter Matt Krantz added that using the 529 college savings plan has many advantages that include a “15 percent edge” over other investment options because it is exempt from capital gains and taxes.