Admit it. An ounce of prevention is worth a pound of medicine. We grew up hearing our wise North Carolinian grandmother’s adage frequently. This axiom rings true on many occasions but especially when applied to financing a college education. In our initial meetings with parents we discuss myriad ways to prepare for a boarding school, independent school and college education. Crisp Consulting + Coaching would like to share two ways to guarantee a penny saved is truly a penny earned for education.
529 College Savings Plan. The 529 is a tax-advantage investment plan that is used for post-secondary education expenses of a designated beneficiary. Each state has a 529 plan that has two avenues: prepaid tuition and savings. Although a thorough conversation is needed to determine which plan would best suit your educational needs, the overall benefit is that distributions for qualified higher education expenses are exempt from federal income tax.
Education IRAs. These plans, such as the Coverdale Education Savings account, can be used for qualifying elementary, secondary and college education expenses. Contributions to these accounts are nondeductible. The advantage of the account, besides that fact it can be used for independent school, boarding school or college, is that the earnings are tax-free and remain so if utilized for education.
Crisp Consulting + Coaching has more information on saving for an education. To learn more about admission, education, financial aid and school options contact Crisp Consulting + Coaching or visit our YouTube Channel.
Brian D. Crisp is an independent educational consultant working with families in Asheville, Charleston, and Savannah to optimize and realize their unique educational fit and admission success. As a former professor, administrator, and teacher, Brian has the knowledge and skills to counsel families in all aspects of educational planning.
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