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Some States Match 529 Plan Contributions

Sep 6, 2012

If you are using a 529 college savings plan to save for college you know the importance of starting early to meet the financial need of a child or loved one. Every dollar you invest in a 529 plan grows tax free. Wouldn't be great to have your contributions to a 529 plan matched just like your 401(k) is matched at work.

Currently there are 10 states that offer matching grant programs. If you are a low to middle income parent, you may qualify for this match. the states that have matching grants are:

  • Arkansas 
  • Colorado 
  • Kansas 
  • Louisiana 
  • Maine 
  • Minnesota 
  • North Dakota 
  • Rhode Island 
  • Utah 
  • Nevada 

Each 529 matching grant program is different in each state. They each have eligibility requirements and limitations. Family's that have income levels that fall within a certain level will have money matched dollar for dollar or even two or three dollars for dollar. According to the college savings website, states like Kansas provide a dollar for dollar match up to $600 for family's that have incomes below 200 percent the poverty level. Other states like Arkansas have tiered system on their matching.

Louisiana has a sliding scale and matches 2 percent to 14 percent of annual contributions on incomes up to $100,000 or less.

No matter what the match is it still is free money for your child's education. The biggest restriction on the plan is you have to be a citizen of the state that provides the plan.

Got further questions? Catch me on twitter and DM me @529SavingsPlans or e-mail me at 529CollegePlans at Gmail.comWant to be heard? Leave a reader comment below.

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