SALEM, Ore., March 14 /PRNewswire-USNewswire/ -- The past year has featured notable improvements in 529 College Savings Plans. As a result, the Office of the State Treasurer is encouraging families to invest their income tax refund in their children's 529 College Savings Plan or open a new account through the Oregon 529 College Savings Network. This year, the April 15 deadline falls on a Sunday, which means Oregonians have until Tuesday, April 17, to file their income tax return and take advantage of the $2,000 state tax deduction for 2006.
In 2006, President Bush signed into law the Pension Protection Act, which permanently extends the tax benefits for 529 plans. Oregon families are encouraged to take advantage of these tax benefits while saving for college as the cost of financing an education rises each year.
The Oregon 529 College Savings Network is a set of qualified college savings plans established by the State of Oregon to help families and individuals save for future higher education expenses. The Network offers three college savings plans:
- MFS 529 Savings Plan, managed by MFS Investment Management - Oregon College Savings Plan, managed by OppenheimerFunds, Inc. - OppenheimerFunds 529 Plan, managed by OppenheimerFunds, Inc.
"Investing in a 529 plan is a smart way for parents to start saving for the rising cost of higher education, and using a tax refund is a great way to get started," said Randall Edwards, Oregon state treasurer and board chair of the Oregon 529 College Savings Network. "The goal of the Oregon 529 program is to provide our residents with different avenues to purchase these plans and offer a wide range of investment options to meet their needs."
The plans provide a number of investment choices with significant state and federal tax advantages and more flexibility than most other college savings programs. Oregon taxpayers can receive up to a $2,000 state tax deduction on contributions each year, and all earnings and withdrawals are federal and Oregon state tax-free when used for higher education expenses, including tuition, fees, books, and room and board.
"Each year, the government is taking steps to make saving for college easier for American families," said Bruce Harrington, vice president at MFS Investment Management and director of its 529 savings plan. "It's vital for families to take advantage of these savings opportunities to finance children's educations as part of their overall savings strategies and retirement planning."
About the Oregon 529 College Savings Network
Oregon State Treasury
