Like a Section 529 Plan, ESAs combine tax-free accumulation with tax-free distributions, but amounts withdrawn for other than educational expenses are subject to federal income taxation plus a 10% penalty. The penalty is waived under the same circumstances given above for Section 529 Plans.By ...
Updated for 2024.Morningstar is a great resource for research on 529 college savings plans, and they have recently updated their annual deep dive on 529 plans:The 2024 529 Savings Plan Landscape(e-mail required). When choosing a 529 college savings plan, you can open a 529 plan from any ...
Saving for college is one of the biggest expenses parents face. Saving for students should be a marathon, not a sprint. A Federal Deposit Insurance Corp. (FDIC)-insured savings account is a safe place to save for your child’s college education. ...
Florida Prepaid offers college savings plans. We provide college tuition funding options including 529 savings plans; learn how we can help you save for college!
Want to learn about education savings accounts? Check out our side-by-side comparison of 529 plans, Coverdell ESAs, and custodial accounts.
How savings plans compare Youth savings account Custodial savings account 529 college plan Who owns it? Parent and child jointly Parents as custodian; funds belong to child Parent or another adult; child is beneficiary Who controls it? Parent and child jointly Parent until...
How savings plans compare Youth savings account Custodial savings account 529 college plan Who owns it? Parent and child jointly Parents as custodian; funds belong to child Parent or another adult; child is beneficiary Who controls it? Parent and child jointly Parent until the child...
A child’s college fund Starting a business Paying off a debt For these goals, you’ll want an account with someliquidity, though the money doesn’t need to be as immediately accessible as with short-term goals. You may also want to take different strategies with the account, such as set...
College funds (529 plans) Individual retirement accounts (traditional and Roth IRAs) Custodial accounts Many of these accounts have tax benefits associated which allow you to save even more money in the long run. For example, a Roth IRA allows you to withdraw your savings tax-free, provided yo...
Comparison to Other Education Savings Options When it comes to saving for education, there are various options available to individuals and families. While a tax-free savings account (TFSA) can be a viable choice for funding educational expenses, it’s important to compare it to other ...