Florida plan offers tax-free college savings account to in- and out-of-state residents

This tax season may be a good opportunity for adults who are concerned about saving money for their younger relatives’ college education, especially if they have not been able to in recent years due to debt consolidation issues.

With the Florida College Investment Plan, adults filing a a tax return this year will have the option of creating a tax-free savings account through a 529 college saving plan that is tax exempt and can be initiated through a variety of five different investment options.

With a tax refund in hand, friends, parents, or grandparents can open a savings account for a child with an initial deposit of at least $250 or an automatic bank withdrawal of at least $25.

"Every grandparent would like to see their grandchildren get a college education. You want the best for them, and one of the best things you can give them is a head start towards college," says Justine Kellner McGeehan, a Tallahassee resident who has an FCIP account for her grandchildren.

Money saved by the plan will be accepted at most accredited public or private universities and colleges for undergrad or graduate programs. Additionally, neither the creator or recipient of funding from the FCIP need to be a resident of Florida.