College Savings Plans
Give the old college
savings a try
College costs for tuition, fees, and room and board continue to rise. And while grants and scholarships play an important role in funding education, it’s largely left to students and parents to cover all the bills—and the late-night pizza runs.
Families typically use multiple sources to pay for post-secondary education, using funds from savings, current income and loans.
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- Annual contribution limit: $2,000 per child (under age 18)
- Income eligibility limits (based on donor’s adjusted gross income)
- Assets must be used by the time the beneficiary reaches age 30 (with some exceptions)
- Funds may be used for qualified elementary, secondary and post-secondary educational expenses
- Flexible investment options
- Higher contribution limits (set by each state)
- No income eligibility limits
- Typically no age restriction (open to adults and children)
- Funds may be used for qualified higher-education expenses and K-12 tuition
- More limited investment options, which become more conservative as the child ages
Investors should consider investment objectives, risks, and charges associated with Section 529 plans prior to investing. Contact your investment representative or carrier for more information about municipal fund securities which is available in the issuer’s official statement or plan disclosure document which should be read carefully prior to investing. Most 529 plans are sponsored and administered by states. State tax benefits vary among the states, and some offer residents additional tax benefits if they invest in their own state plan. Consult your tax adviser for more information.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Consumers Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.