The international investment firm StateTrust Investments is known for its comprehensive financial advisory and wealth management services. StateTrust Investments offers financial strategies to help clients plan for higher education.
Funding college education in the United States is a source of concern for many parents. The Institute of Educational Sciences released information indicating that the average cost for just one academic year at a public tertiary institution is almost $14,000 USD. When saving for a child’s future college education, many people appreciate flexibility in an education plan, since the future is difficult to predict. The 529 college savings plan is sponsored by states, agencies, or colleges and universities, and allows parents to benefit in a number of ways. The earnings are exempt from federal tax (as long as the monies are used for eligible collage expenses), parents retain complete access and control, it is possible to roll the amount over to another family member in the event that the child does not attend college, and there are no limitations to the age at which the funds must be used.
529 plans are so named because the authorization comes from section 529 of the Internal Revenue Code. The plans exist in two forms: college savings plans and prepaid tuition plans. College savings plans allow parents or guardians to invest in an account for access at a later date to pay for education, calculated at the tuition prices that apply once the money is accessed. Alternatively, the prepaid tuition option allows purchase of tuition at tertiary institutions, calculated at the current tuition rate.
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