Saving for College and Educational Cost
As college tuition cost and inflation continue to rise, it is becoming more and more difficult for families to afford the cost of college education. We can help guide you through savings and investment options intended to help you meet the rising cost of tuition.
We offer several products specifically designed to help families save for educational costs. Many of these products offer tax-deferred benefits. Contact us today so we can help you determine which educational savings product is right for you.
Educational Savings Accounts
529 Savings Plans
529 plans are flexible, tax-advantaged savings plans designed specifically for college savings. These plans are generally sponsored by a state or state agency. Contributions are made post-tax but earnings are tax-free (federal
and most states).
529 Savings Plans offer a wide use of funds that can be used at any college in the United States or abroad that is accredited by the Department of Education. Additionally, most plans will allow the money to be used
towards graduate school programs as well.
Coverdell Education Account (ESA)
A Coverdell Education Account (ESA) — formerly referred to as an Educational IRA — is a
tax- advantaged account used to help families save for a child’s K-12 or college education.
Contributions are made post-tax and are not tax-deductible, however earnings grow tax-free and should remain tax free (federal
and most states) upon withdrawal. Contribution limits are set at $2,000 a year
and cannot be made after the beneficiary reaches 18 years of age.
Withdrawals can be used for qualified educational expenses such a tuition, books, fees and uniforms for expenses relating to elementary, secondary, and college education.
