Achieve your educational goals with the right savings plan.
It’s no secret that getting a college education can be an expensive endeavor, but there are programs designed to help you save for higher education through tax advantages. One of these programs is the qualified tuition plan, also known as the 529 Plan.
Qualified Tuition Plan
A 529 Plan is a tax-advantaged investment savings account designed to encourage saving for future higher education expenses. It is sponsored by states, state agencies, or educational institutions. The plan invests the money in the account and its earnings and growth are not subject to federal income tax until the beneficiary reaches college age.
Once the beneficiary reaches college age, the funds are generally used to pay for his or her higher education at any college or university, regardless of the state that sponsors the plan. The amounts withdrawn for educational expenses of the beneficiary are not subject to income tax; however, any other use is subject to tax.
To set up a 529 Plan, a donor (whether a parent, grandparent, or any other person) may establish an account by contributing cash to the plan and designating a beneficiary of the account. Most states even allow non-residents to create 529 Plan accounts.
While there is no limit to the amount of annual contributions to the 529 Plan account, each state sets a total contribution limit based on the average cost of that state's attending college.*
For more information about the 529 Plan, consult with a financial advisor right here at Members First or visit the U.S. Securities and Exchange Commission website.
Tuition Funding Programs
At any Members First branch, you have access to a Financial Advisor with the Commonwealth Financial Group for discussing college savings and planning. Schedule a no obligation consultation with Ian Frederick to start preparing for the future today.
College Savings Calculator
Like saving for retirement, the earlier you start a college savings plan the better. Our financial calculator can help you develop or fine tune your education savings plan.
We’re here to help along your journey toward achieving a higher education. If you have any questions along the way, don’t hesitate to contact us.