Madison infants earn CollegeCounts funds

MADISON – Two Madison families have been awarded $529 in CollegeCounts Savings from the state treasurer’s office.

Art Lapietra and Kimberly Lancaster of Madison both welcomed babies who were born in May. The infants received starter funds for college expenses.

The promotion is held in honor of 5/29 day (May 29). Families of children born between May 1 to May 31, 2017 could visit CollegeCounts529.com and enter their contact information and newborn’s date of birth.

CollegeCounts officials selected the winners at random from across the state. A total of $12,696 was given to 24 newborns and their families.

Alabama State Treasurer Young Boozer announced the statewide winners of the CollegeCounts Alabama’s 529 Plan promotion.

“Now in its third year, we are thrilled to see the growing participation in the 5/29 Day promotion,” Boozer said. “We like to reinforce that every contribution, no matter how big or small, makes a difference, and it is our privilege to help these families get started.”

CollegeCounts has no minimum contribution requirements, allowing families to open accounts and save a small amount each month through quality investment funds. These funds include Vanguard, T. Rowe Price, Fidelity, PIMCO, Dodge and Cox, Mainstay and DFA.

Under the 529 Section of the tax code, families qualify for special tax benefits to save for future college expenses. In addition, Alabama taxpayers may receive a state income tax deduction of up to $10,000 for married couples filing jointly ($5,000 for single filers) on contributions to CollegeCounts each year.

“Our hope is that these starter funds spur future investments for maximum benefit and help to lessen the burden of college costs for them and their children in the future,” Boozer said.

Families can withdraw funds to use at colleges, universities, trade schools and graduate schools at one-, two- and four-year schools in Alabama and across the United States. Various types of institutions are eligible, including vocational, technical, community, public and private colleges and universities.

Expenses that qualify include tuition, fees, room and board (if the student is enrolled at least half-time); books; supplies; and equipment required for enrollment, including computers.

For more information about investing in an account, visit CollegeCounts529.com.