College Savings Plans
College can be a huge financial burden on a family. But if planned for, it doesn't have to be.
ESAs
Coverdell ESAs offer potential: tax
benefits, flexibility of who holds account, income caps on owner, allows corporations to participate, can be used for educational expenses through K -12 & college, & can be rolled over between relatives.
529s
529s offer the potential for: tax advantages, can be rolled over to siblings, flexible contributions, and growth potential determined
by your state & individual circumstances.
IRAs & Annuities
IRAs and Annuities are predominately investment vehicles for retirement,and while not often used for education savings offer potential benefits: multiple types with different tax advantages,potential for higher interest rates to compound the college savings, and some offer insurances that account balances won’t fall below certain amounts. potential benefits: multiple types with different tax advantages, potential for higher interest rates to compound the college savings, and some offer insurances that account balances won’t fall below certain amounts.
UGMA/UTMAs
UGMA/UTMAs offer the potential for: tax advantages, flexible use of funds (not just on college expenses), counted on the FASFA as student's income and affects Financial Aid Eligibility.