The world is full of opportunities. Finding the spark that fuels the imagination is what life is all about. Whatever career path you or your child might choose, we have a plan for it. With the Alaska 529 plan, we make it easy to save now for all your future education needs. Let us help you turn your sparks into a bright, bright future.
With an Alaska 529 education savings plan, you can invest your savings, including your PFD, to pay for K-12 tuition, vocational school, college, graduate school, continuing education and education-related expenses. Best of all, savings in your account can be used in Alaska or out of state.
Did you know that, unlike savings accounts, your Alaska 529 account grows tax-deferred and qualified distributions are exempt from federal taxes?* Also, Alaska 529 lets you open an account with your PFD. You can also save automatically with just $25 per month.
Worried about financial aid? Here is some good news. Parent-owned 529 plan assets are considered parental assets, which are included at a smaller percentage than student-owned assets when factored into federal financial aid formulas. This means, no matter how much your 529 plan grows, its impact on need-based financial aid will likely be minimal. What happens if your child gets a scholarship or decides not to go to college or vocational school? You can easily change your beneficiary to another family member such as younger siblings, nieces, nephews, or grandchildren, or even yourself.
Ready to get started? If you would like to invest your PFD in an Alaska 529 account, all you have to do is answer “Yes” to the Alaska 529 question on your PFD application. You can put 50% of your or your child’s PFD into the plan, or take advantage of the opportunity to invest 100%. Let’s look at the chart to see what your savings can do.
Investing your PFD in an Alaska 529 account gives you yet another opportunity – the chance to win a $25,000 scholarship. Simply answer “Yes” to the Alaska 529 question on your PFD application, invest at least 50% of your or your child’s PFD, and you’ll be entered into the $25,000 Scholarship Account Giveaway. Certain restrictions apply; see the official rules at Alaska529plan.com for details.
Marta Taylor of Soldotna didn’t let the opportunity pass her by. Last year, she answered “Yes” to invest her PFD. In November, she learned that she had won the $25,000 scholarship. She gave the scholarship to her daughter, a 10th grader who will be attending college in a few years. “When I got my master’s degree in engineering I worked my way through school and borrowed student loans and scraped my way through. So to have this to give to my daughter is just such a gift,” Taylor said. This was the first year she had chosen to invest her PFD in an Alaska 529 account.
Exciting, isn’t it? Ready to find out more about how saving your PFD can help you reach your education savings goals? Get started by visiting Alaska529plan.com/PFD or by giving one of our education savings specialists a call at 1-866-277-1005.
While distributions from 529 college savings plans for elementary or secondary education tuition expenses are federally tax-free, state tax treatment will vary and could include state income taxes assessed, the recapture of previously deducted amounts from amounts from state taxes, and/or state-level penalties. You should consult with a tax or legal advisor for additional information.
If you are not an Alaska resident, you should compare this Plan with any 529 college savings plan offered by your home state or your beneficiary’s home state and consider, before investing, any state tax or other state benefits, such as financial aid, scholarship funds, and protection from creditors that are only available for investments in the home state’s plan. You can call 1-866-277-1005 or visit the forms section of our site to request a Plan Disclosure Document, which includes investment objectives, risks, fees, charges and expenses, and other information that you should read and consider carefully before investing. T. Rowe Price Investment Services, Inc., Distributor/Underwriter.