Saving for Your Child’s Education

Being able to help your child attend a private school or college is the dream of many parents. There are several account options for you to choose from to assist in saving for education.

529 Plan

The 529 Plan typically is the most flexible education savings arrangement, and it comes with several tax benefits. Tax-deferred or tax-free growth of assets, and state tax-deductions are available. There are no income limits preventing you from starting or contributing to a 529. Beneficiaries may be changed by the donor if a child does not need or use the funds for education. Investments are controlled by the 529 Plan provider, selected by the state of choice.

Coverdell Education Savings Accounts

Coverdell accounts are similar to 529 Plans, and may be used for K-12 educational expenses. There are income limitations for donors.

Uniform Transfers to Minors Act (UTMA) Accounts

While less tax advantaged, UTMAs have the benefit of being flexible for investment options, and may be used for a wide variety of expenses for the child. At a certain age, the child becomes the owner of the account.

Our F&M Trust relationship managers can review education savings options with you and assist you in selecting what is appropriate for your particular needs. 


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