5 Ways That Can Help You Pay For Higher Education
But parents can take advantage of several college savings tools to help meet this steep challenge. Consider these five possibilities:
1. Section 529 plans: Section 529 plans, sponsored by U.S. states, encourage families to set aside funds for the future education expenses of beneficiaries. The contribution limit usually is at least $300,000. As long as certain requirements are met, your investment can grow without current taxes, and distributions made for qualifying college expenses—including tuition, fees, books, supplies, equipment, and room and board for full-time students—also are tax-free.
There are two main types of Section 529 plans: (1) prepaid tuition plans that let you prepay the cost of attending college years down the road at current rates and (2) college savings plans, whose assets are invested according to your preferences.
© 2018. All Rights Reserved.
- Passing Down IRA Assets? Clue In Family Members
- Should You Fly Solo In Your Own 401(k) Plan?
- 17 Midyear Tax Moves You Still Can Make In '17
- Seven Smart Money Moves You Should Make In 2017
- Avoid These 6 Mistakes In Stretch IRA Planning
- Time Your Social Security Benefits For Top Results
- How To Diversify With Investment Real Estate
- Four Tax-Wise Ways To Donate Gifts To Charity
- Don't Ignore These Seven Retirement Saving Ideas
- 5 Steps To Help Women Save More For Retirement
- Seven Ways To Slow The 'Tax Drag' On Investments
- Roth IRA Conversions: The Time May Be Right
- 5 Steps To Realize An Early Retirement Dream
- 7 Financial Steps Forward In A Second Marriage
- Weigh Five 401(k) Options When You Leave A Job