First State Times

QUALIFIED ACCOUNTS TO RECEIVE $100 CONTRIBUTION

Continuing her commitment to make saving for higher education easier, Delaware State Treasurer Colleen Davis announces the “First State, First Steps” program.

“I have said time and time again that it’s never too early to save for college and ‘First State, First Steps’ will help people get started,” Davis said. “I know families with young children have competing financial priorities, so we want to help them get started.”

“First State, First Steps” is an incentive program for Delawareans. The program provides for a $100 contribution to a DE529 Education Savings Plan account opened between July 1, 2022, and December 31, 2022.

In addition to the account being opened during the applicable time period, in order to qualify for the $100 incentive:

• The beneficiary must be five years of age or younger at the time of account opening
• The beneficiary must be a Delaware resident at the time the account is opened
• A minimum contribution of at least $100.00 must be made to the DE529 account when the account is opened

Delaware’s 529 Plan is sponsored by the State of Delaware and managed by Fidelity Investments. The Plan provides tax-advantaged accounts designed to help parents, grandparents and others pay for higher education expenses.

The cost of a four-year public college has increased 225% over the last 30 years, according to the College Board. Each year it becomes harder and harder for families to afford a quality education without setting themselves up for years of student loans payments.

“The student loan balance for Delawareans averages more than 37-thousand dollars,” Davis said. “Proper saving can help students graduate without facing years of loan payments allowing them to save for other financial goals including a home, car, and retirement.”

Money in a DE529 account grows on a tax deferred basis, and withdrawals for qualified education expenses like tuition, fees, and books are federal and Delaware income tax-free.

For more information on the “First State, First Steps Program,” visit 529.delaware.gov.

_{Source: https://news.delaware.gov/2022/07/01/fsfs/}