Education Planning
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- 529 College Saving Plans
Qualified state tuition programs or 529 College Savings Plans are designed to help people save for the cost of higher, and in some cases, secondary education. 529 College Plans provide several key benefits for investors, including tax savings, flexibility in selecting portfolios management, and offer the ability to control dispersions to beneficiaries. - Education IRAs
A Coverdell Education Savings Account, formerly called an Education IRA, is a trust or custodial account created to pay the qualified education expenses of a designated beneficiary. Parents, grandparents, other family members, friends and children themselves may deposit up to $2,000 per year for each beneficiary under 18 years old provided the total contribution does not exceed the $2,000 limit. - Education Trusts
There are several alternatives for planning for education financing with the use of trusts. Two traditional methods are through the Uniform Gift to Minors Act (UGMA) and the Uniform Transfer to Minors Act that established a simple way for parents to transfer stocks, bonds, mutual funds, annuities, real estate, fine art, patents, copyrights and life insurance policies to their children. Another approach is by use of irrevocable trusts. - Covercdell Education Savings Accounts
A Coverdell ESA, formerly known as an Education IRA, is a trust or custodial account created to pay the qualified education expenses of a designated beneficiary. Parents, grandparents, other family members, friends and children themselves may deposit money for each beneficiary under 18 years old.
Financial Services Education Planning 529 Plans
Education Planning, 529 Plans
Qualified state tuition programs or 529 College Savings Plans are designed to help people save for the cost of higher, and in some cases, secondary education. 529 College Plans provide several key benefits for investors, including tax savings, flexibility in selecting portfolios management, and offer the ability to control dispersions to beneficiaries. Unlike UGMA/UTMA accounts, the parents or grandparents make the decisions on whether the funds will be withdrawn. They are free to change beneficiaries at any time.
Although the 529 Plans are established separately in each state, 529 Plans can be used at any accredited post-secondary school in the U.S. Contributions accumulate tax-free in diversified professionally managed portfolios made up of mutual funds and are distributed free of federal and often state taxes when used for qualified educational expenses. 529 Plans offer a very high $250,000 limit; higher than available with other options.
Dugan & Lopatka Financial Services, LLC104 E. Roosevelt Rd., Wheaton, Illinois 60187Phone: (630) 665-0914Fax: (630) 665-5030
DUGAN & LOPATKA FINANCIAL SERVICES IS NOT AN AFFILIATE COMPANY OF LPL FINANCIAL. SECURITIES AND ADVISORY SERVICES OFFERED THROUGH LPL FINANCIAL, A REGISTERED INVESTMENT ADVISOR, MEMBER FINRA/SIPC.
