College 529 Plans

Saving for higher education is a vital piece of financial planning these days. With the increasing costs of post-secondary education, many people are taking advantage of new ways to save money in order to pay for these expenses in the future. The three most common ways are the Education IRA, UGMA/UTMA, and the College 529 program.

Education IRA - a trust created for the exclusive purpose of paying the designated beneficiary's higher education expenses. Contributions to the trust are limited to a small amount annually, and control of the funds switches to the beneficiary at the age of majority.

UGMA - known as the Uniform Gift to Minors Act - this plan allows people to gift up to $11,000 annually to the beneficiary's account. At the age of 18 (21 in New Jersey, varies by state) beneficiaries gain control of the money.

529 College Saving plan - a very simple way to save money for your kid's (or anyone else's) .  For updated information and contribution limits see link below.
 

For additional information contact Paul Pucilowski at (212) 603-0365

www.irs.gov/publications/p590/ar01.htm

www.savingforcollege.com

Security products are offered through Walnut Street Securities, Inc (WSS) Member FINRA, SIPC. Thesco Retirement Planning Services, LLC (TRPS)is not a control affiliate or subsidiary of WSS.