That's why it's important for parents to start a savings plan for their children's higher education now.
Expenses covered include tuition, fees, supplies, books, and certain room and board costs.
Significant gift and estate tax benefits. In addition, even though the Account Owner maintains control over the Account, amounts in the Account generally are not included in the Account Owner's Gross estate for federal estate tax purposes. According to Bennett, the state income tax deduction is particularly important because of the April 16 filing deadline just around the corner. Residents who open an account now, before that deadline, can deduct their contributions from their state income taxes for the year 2000. The State College Savings Board of Directors has selected as Program Manager, TIAA-CREF Tuition Financing, Inc., a wholly owned subsidiary of TIAA, part of the nation's largest and leading financial services group and the foremost pension and investment system for college faculties.