Education Planning and Funding

The cost of a college education is daunting for many families, but advance planning can help immensely. Some people can use multi-generational education planning, but Uniform Gift to Minors accounts, Coverdell Education Savings accounts, and 529 plans are more common. The most popular of these are 529 plans.

Section 529 college savings plans are tax-advantaged state-administered investment programs. Each plan is set up for a particular beneficiary/student. These plans allow you to save money in an account in which the earnings grow federal income tax-free and may be withdrawn federal income tax-free when used to pay for qualified higher education expenses. In many states, a participant can also receive special state incentives based on participation in their state’s program(s). Amounts contributed and any earnings on the account can then be used to pay the beneficiary’s qualified higher education expenses. The plans offer various investment options, including some that guarantee a minimum rate of return. We will be happy to work with you to set up a plan for your child, grandchild, or any other child you would like to help with educational expenses.