College Savings Strategies
College Savings Strategies
The costs of sending your children to college can add up quickly. One of the ways to prepare for the growing costs of post-secondary school is through a 529 college savings account.
529 savings plans can be used at virtually any accredited college or university in the U.S. and offer favorable tax benefits. Withdrawals from 529 plans can be used to pay for tuition, room and board, fees, books, supplies, and equipment required for enrollment.
Contact us today to learn how to open an account for someone you care for.
Did you know?1
- College graduates age 25 and over earn nearly twice as much as workers who stopped with a high school diploma.
- Among men, median earnings of four-year college graduates were 19 percent higher than median earnings of high school graduates in 1975. The gap grew to 37 percent in 1985, 56 percent in 1995, and 63 percent in 2005.
- Among women, median earnings of four-year college graduates were 37 percent higher than median earnings of high school graduates in 1975. The gap grew to 47 percent in 1985, and 71 percent in 1995. It was 70 percent in 2005.
Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.