Paying for College

New option for unused funds in a 529 college savings plan

529 Saving Plan, College Education Expenses, Education Tax Breaks, Roth IRA / Douglas Freeman

With the high cost of college, many parents begin saving with 529 plans when their children are babies. Contributions to these plans aren’t tax deductible, but they grow tax-deferred. Earnings used to pay qualified education expenses can be withdrawn tax-free. However, earnings used for other purposes may be subject to income tax plus a 10% […]

New option for unused funds in a 529 college savings plan Read More »

Tax-wise ways to save for college

529 Saving Plan, AGI (Adjustable Gross Income), Coverdell Education Savings Account (ESA), Education Tax Breaks, Modified Adjusted Gross Income (MAGI), Savings Bonds, Uncategorized / Douglas Freeman

If you’re a parent or grandparent with college-bound children, you may want to save to fund future education costs. Here are several approaches to take maximum advantage of the tax-favored ways to save that may be available to you. Savings bonds. Series EE U.S. savings bonds offer two tax-saving opportunities when used to finance college

Tax-wise ways to save for college Read More »