Today we will talk about saving for Kids College Education. If you have kids then you will know how important it is to start saving for the college education.’
529 column savings plan
But where do you start, you may wanna open a 529 column savings plan which will enable you to invest on higher education free of federal and sometimes state income taxes. With this plan you can enjoy the flexibility, high contribution limits and tax advantages. But the money can only used for the college.
Education savings account
You may also think about an education savings account where you can start investing for any level of child’s education from birth. Although contributions are not tax deductable, your earning grows tax free and withdrawals are free from Federal income taxes when used for qualified educational expenses.
UGMA or UTMA accounts
Another option is UGMA or UTMA accounts which offer no contribution limits. However when the child turns 18 they gain control of the money.
Regular invest account at any broker
Finally you may wanna interest on the regular invest account where you retain complete control of the account.
Ultimately, it’s you need to decide which rode to take but remember it is important to start saving for the college education now!
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Filed in: Saving Money
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