INVEST IN EDUCATION

The cost of a college education is at an all-time high, leaving many wondering how to best save money to pay for tuition and other college costs. There are many options available to help you save, including 529 plans, Coverdell accounts, and Prepaid plans. When formulating a plan, we think of all the factors that influence the cost of an education, such as location, cost of living and scheduling. 

If you’re unsure of how to get your education funding plans off the ground, consider working with us.

Roth IRAs and custodial accounts are also viable options for education planning. Contributions to a Roth IRA can be withdrawn tax- and penalty-free whenever. Even earnings can be withdrawn penalty-free before age 59.5, provided that they’re used for the educational expenses of a child or grandchild.

Custodial accounts offer the most flexibility. They allow you to set money aside that then becomes the property of your dependent when they reach a certain age. However, earnings over $2,100 are taxed at the parent’s marginal tax rate. The account owner is under no obligation to spend the money in the account on education expenses, though.

The SECURE Act 2.0 made a lot changes that could impact your financial strategy, including being able to rollover unused 529 money into a Roth IRA.