In the college savings game, all strategies aren’t created equal. South Carolina residents who contribute to a South Carolina 529 Plan receive an “unlimited” state income tax deduction.
In the college savings game, all strategies aren’t created equal.
This means that a South Carolina taxpayer can deduct any amount they contribute to a SC 529 plan, as long as they have income to deduct.
The best savings vehicles offer special tax advantages if the funds are used to pay for college. Tax-advantaged strategies are important because over time, you can potentially accumulate more money with a tax-advantaged investment compared to a taxable investment. Ideally, though, you’ll want to choose a savings vehicle that offers you the best combination of tax advantages, financial aid benefits, and flexibility, while meeting your overall investment needs.
- Section 529 College Savings Plans
- Section 529 Prepaid Tuition Accounts
- Coverdell Education Savings Accounts
- U.S. Savings Bonds
- Custodial Accounts
- Financial Aid Impact