College Planning
Meeting the Cost of Higher Education
As the rising cost of college tuition continues to outpace many common savings options, let the experts at B.O.C. Financial Services design a savings strategy to help your family achieve its education goals. A few of the many options we provide are outlined below.
Higher Education Savings Vehicles
These plans allow contributions to an account established to pay “qualified higher education expenses.” Contributions are not tax deductible, but growth is tax deferred. You can invest as little as $25 per month.*
Formerly known as the Education IRA, the Coverdell Education Savings Account allows you to invest $2,000 per beneficiary per year. Contributions are not tax deductible, but growth is tax deferred. Distributions are excluded from income if used for qualified education expenses, including elementary, secondary, and college tuition costs. Some restrictions apply.
A Uniform Transfer to Minors Act (UTMA) Account allows you to establish a custodial account to save for college expenses. As the custodian of the UTMA account, you can control the investments, while the minor maintains “account owner” status. Upon reaching the age of maturity, the minor assumes control over the account.
*Depending on your state of residence, there may be an in-state 529 plan that offers tax and other benefits. Before investing in any state’s 529 plan, investors should consult a tax advisor.
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