Why is opening an account with the START Savings Program different than opening a savings account at a bank or investing in the stock market?

There are distinct benefits of a START Saving Program account, including:

Ten (10) investment funds are offered to meet the unique circumstances of each account owner. These funds range from very conservative to very aggressive.

A deposit in the Principal Protection Fund is guaranteed by the State of Louisiana.

The State of Louisiana will match up to fourteen percent (14%) of deposits each year with Earnings Enhancements.

Deposits made to an account may be excluded from taxable income reported on the account owner’s Louisiana tax return, up to $2,400.00 per year, per beneficiary, for single account owners and up to $4,800 per year, per beneficiary, for married account owners filing jointly. Any unused exclusion may be carried forward to subsequent tax years.

The Current Value of an account may be used to pay the Qualified Higher Education Expenses of the beneficiary at any accredited college or university (in or out-of-state), and at campuses of the Louisiana Technical College and state-approved proprietary schools.

No fees are charged to participants in the START Saving Program. The START Saving Program is charged management fees on moneys that it invests in mutual funds offered by The Vanguard Group. The fees are very low relative to what is charged by other funds.

As a Qualified Tuition Program, the START Saving Program is exempt from federal taxes, which means the program does not pay taxes that could reduce your return on investments.

Deposits can be made through automatic bank debit, payroll deduction, or direct payment (including lump sums). There is no limitation on the frequency of deposits and the minimum deposit amount is only $10.

Earnings are tax deferred while in the account and are exempt from state and federal taxes when used to pay Qualified Higher Education Expenses, which include tuition, fees, room, board, books, supplies, certain required equipment, and special needs services.