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Education Planning

The cost of college tuition is rising each year, leaving many families wondering how to save for their children’s future education costs. Early education planning is the best course of action, especially if you have multiple children. From 529 savings plans to Coverdell accounts, there are many options available to help parents save. Working with a financial advisor can help you properly consider all factors that influence education costs, such as location, cost of living, and type of institution. 

Ways to Save for Education Expenses

It is never too early to start saving to ensure resources are available when your children attend college. Coverdell education savings accounts and 529 college savings plans are accessible, flexible, and tax-advantaged ways to save for college.

  • 529 Plans: These tax-deductible plans are one of the best ways to save for future education expenses. Your children may also be able to skip taxes on these funds, provided they are spent on qualifying education costs.   
  • Coverdell Plans: Similar to 529 plans, Coverdell accounts also allow parents to deduct taxes on contributions. To qualify, your family must earn less than $220,000 annually. You can contribute $2,000 per child each year until their 18th birthday.

Other options include IRAs, traditional savings accounts, and certificate of deposit accounts. 

Work With an Education Planning Specialist

Ready to start saving for your child’s education? At Susquehanna Financial Advisors LLC, we can help you find a prudent saving strategy. We can also help you take advantage of various educational tax incentives to help ease the financial burden of paying for college. Contact us today to set up a consultation with an advisor.

Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.

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