Education Plans


There are many varieties of Educational Plans available that allow you to provide for your children's future. Making the right decision can be difficult based on many circumstances so it is always recommended that you talk to a Paisley Advisor before selection has been made.

Education plans are flexible, tax-advantaged accounts designed specifically for education savings. Funds can be used for qualified education expenses for schools nationwide. While your money is in the account, no taxes will be due on investment earnings. When you take money out for qualified education expenses, withdrawals are federal income tax-free. p>

You can use the money for a wide range of college expenses at accredited schools nationwide in addition to tuition expenses for K-12 and more. And there are no annual account fees or minimums to open one up.



529 Plan

A 529 plan is a tax-advantaged investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary.

Money from a 529 plan can be used for tuition, fees, books, supplies and equipment required for study at any accredited college, university or vocational school in the United States and at some foreign universities. The money can also be used for room and board, as long as the fund beneficiary is at least a half-time student. Off-campus housing costs are covered up to the allowance for room and board that the college includes in its cost of attendance for federal financial-aid purposes.

Note that qualified education expenses do not include student loans and student loan interest.

Coverdell ESA

A Coverdell Education Savings is a tax-advantaged investment account designed to encourage savings to cover future education expenses (elementary, secondary or college), such as tuition, books, uniform etc…

The tax treatment of Coverdell ESA's is much the same as that of 529 plans with a few important differences. Like a 529 plan, Coverdell ESA's allow money to grow tax deferred and proceeds to be withdrawn tax free for qualified education expenses at a qualified institution. However the definition of qualified expenses in an ESA includes primary and secondary school, not just college and university.

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