College Savings Plans

A college education can play a crucial part in a loved one’s long-term happiness and financial security.  Investing in a 529 plan is a tax-advantaged way to save for higher education expenses, such as tuition, room and board, and required books and supplies.  You can open an account for anyone, and do so no matter how much you earn.  Individuals can contribute up to $14,000 a year ($28,000 for married couples) towards a loved one’s college education without gift-tax consequences.  Or, under a special election, you can combine up to five years into one contribution up to $70,000 ($140,000 for married couples) without gift-tax consequences.[1]  A Coverdale ESA (Educational Savings Account) accounts work similar to a 529 plan, offering tax-free investment growth and tax-free withdrawals when the funds are spent on qualified education expenses. In addition to college expenses, certain K-12 purchases are also considered qualified when using a Coverdell ESA.

For more information visit www.savingforcollege.com and then give us a call to discuss which college savings option is best for you.