NC 529 Plan Recommends Sending Year-End Contributions Early for Processing in 2010 Tax Year

Dec 02, 2010, 09:38 ET from College Foundation of North Carolina

RALEIGH, N.C., Dec. 2, 2010 /PRNewswire-USNewswire/ -- Parents, grandparents and others thinking about making contributions to an NC 529 college savings plan account are encouraged to beat the end-of-year rush, particularly if interested in a 2010 state tax deduction.  Any North Carolina taxpayer who wants to help someone with NC 529 college savings may be eligible for a tax deduction, not just account owners.  

Due to the heavy volume of 529 contributions often received in December, combined with increased holiday mail, contributing early is prudent.  For contributions to be considered received by 2010, they must be processed by the Plan by December 31, not just postmarked by that date.  End of year deadlines for processing will differ based on the method used to contribute, such as by paper check, wire or electronic draft. Waiting until the last minute may cause a problem if there are questions concerning your contribution or enrollment form or mail delays.  

Go to CFNC.org/NC529 for the specific year-end deadlines for 2010 contributions. Since your holiday gift can benefit both you and the recipient, don't miss your chance this year.  N.C. taxpayers may be eligible for a state tax deduction for NC 529 contributions of up to $2,500 for an individual and $5,000 for a married couple filing jointly.  

If you have any questions about the NC 529 Plan, call College Foundation of North Carolina toll-free at 1-800-600-3453.

SOURCE College Foundation of North Carolina



RELATED LINKS

http://www.cfnc.org/NC529