College Planning
Depending on your timeframe, financial or tuition needs, our representatives can help you choose from several options that can make college funding easier for your family.
College Savings plans (Section 529)
College Savings plans are similar to Prepaid Tuition plans, but are more flexible and are not guaranteed by any state.
- Contributions and earnings are tax-deferred
- You control the accounts, the beneficiary does not
- Beneficiary may be able to withdraw funds "tax-free" to pay for qualified educational expenses, including tuition, room, board, books, and fees
- Anyone, family or friend, can contribute
- Proceeds may be used at any college – public, private, in-state, or out-of-state
- Check with your tax advisor to see if you're eligible for a tax deduction
Before investing in a 529 plan, investors should carefully consider whether their home state offers any state tax or other benefits that are only available for investments in their state's 529 college savings plan.
Education IRAs
Under these plans, parents can contribute a set amount for each of their children up to the age of 18. Contributions and subsequent earnings are not taxed when withdrawn to pay for qualified education expenses, including tuition, fees, books and supplies.
Uniform Gifts to Minor Act Accounts/Uniform Transfers to Minor Act Accounts
Parents can set up an irrevocable transfer of funds to a minor child that is held in one of these custodial accounts until the child reaches maturity.
- A simple way to transfer property to a minor
- Invest in mutual funds
- Earnings are usually taxed at child's tax rate
- Assets belong to the minor once reaching adulthood
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