Education Accounts

For parents and grandparents with time to save, consider a 529 plan account that allows savings to grow tax-deferred, and distributions are tax-free when used for tuition, fees, room and board, books, and supplies. There are no income limits on contributions, and you can contribute up to $17,000/year ($34,000 for a married couple) per beneficiary.


A 10-year trend reveals families are covering an increasing share of college spending out-of-pocket.*

*Sallie Mae, “How America Pays for College,” 2022

Education savings solutions

What better gift can you give your child or grandchild than helping to start them on the road to financial well-being and avoid the crushing burden of student loan debt? Your Janney Financial Advisor can help you estimate future education costs and make recommendations for savings vehicles and a savings plan that aligns with your best interest. Some education savings vehicles for consideration include:

A calculator

529 college savings plans

Tax-advantaged accounts specifically designed to help save for primary and secondary tuition expenses as well as college tuition and other qualified expenses where you (the account owner) name a child, grandchild, or other relative as the account beneficiary (which can be changed as needed) and control distributions from the account

A checklist and a pen

Coverdell educational savings accounts

Government-sponsored tax-advantaged savings accounts that can be used to pay for primary, secondary, and university/college level educational expenses, but contributions are limited to $2,000 per year

Uniform gifts to minors/uniform transfers to minors accounts (UGMA/UTMA)

Custodial accounts for educational saving where the child is the owner of the assets which are managed by a named custodian.

 


Did you know that under the Tax Cuts and Jobs Act, 529 plan accounts can be utilized to help pay for a wider range of educational expenses—including elementary and secondary school tuition and fees at any accredited public, private, or religious institution?

 

 

 

 

Talk with a Janney Financial Advisor

You don’t need to go it alone. Wherever you are on your wealth journey, we can build a tailored financial plan and make recommendations that are aligned with your best interest and unique needs, goals, and preferences. Contact us today to discuss how we can put a plan in place designed to help you reach your financial goals.

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