College Savings Plans

As with tax-deferred retirement plans, Congress encourages us to save for our children's college and other higher education costs by offering tax benefits. While the plans do not allow for current tax deductions on contributions, growth and income generated within the plans are not subject to annual taxation. Distributions, when properly qualified, enjoy tax benefits as well. There may also be estate planning benefits. There are two tax qualified plan designs available:

• Coverdell Education Savings Accounts: limited to $2,000 annual contribution                        

• 529 Qualified Tuition Program: higher limits,also useful for estate planning

We encourage appropriate and suitable investments for long-term asset accumulation no matter what you call it.  College Savings Plans are a piece of a puzzle that has only one solution: to maximize your real wealth by all appropriate and affordable means. This is how we define the goal of Financial Planning.