
This bonus offer is just the motivation I need to get those 529 accounts opened. The $50 Target gift card is a huge return in and of itself, and having the accounts open means that family can contribute to the boys' college funds if they are so inclined. It also gives me a place to transfer my Upromise earnings, so I don't have to go through the hassle of requesting a check.
I am disappointed that California provides no state tax deduction for contributing to a 529 account. And with the state needing all the money it can get, I don't see that changing any time soon.
Notable fine print: The offer expires on December 31, 2008, and is limited to California residents. You must establish an automatic monthly investment of at least $50 per month, with the initial $50 automatic investment contributed and invested within 90 days after the account is opened. There's a limit of two gift cards per person, and each account must have a different designated beneficiary and be individually owned (no trust, custodial or other ownership arrangements).
As Madison points out, the fine print states that you should allow 8 to 10 weeks from qualification for the mailing of the gift card, so you might end up having to make up to three monthly contributions of $150 per account before you can terminate your contributions. Even if you end up contributing $150 before you get your gift card, though, you'll still get a 33% return on your investment, and you'll have that money sitting there and growing until your child heads off to college. That's a pretty good deal all around!
1 comment:
Education is top priority for us, parents. Thanks for sharing your information.
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