FAYETTEVILLE, Ark. – University of Arkansas faculty and staff now have three options for setting up direct deposits to fund college savings accounts for their children.

The state of Arkansas now offers a 529 College Savings Plan that U of A employees are eligible to open at any time.

The university also offers 529 plans from TIAA and Fidelity Investments.

Information about all three plans will be available during the Benefits Fair hosted by Human Resources on Friday, Nov. 9 in the Arkansas Union.

College Savings Plans – also known as 529 accounts -- provide U of A employees the opportunity to make direct deposits from their monthly pay into accounts for their children’s future education – four year or two year colleges or technical schools. The money invested may be deducted from a person’s gross annual income on state taxes, and the interest from the account will not be taxed at all as long as the funds in the account are spent on education.

 Research has indicated that taking part in 529 accounts can inspire families to think seriously about the possibilities of advanced education for their children. In addition,  students who benefit from 529 plans are three times more likely to attend college and two and a half times more likely to graduate than their peers without savings accounts.