It is no secret that college tuition is rising annually. Even affluent families can be burdened with the prospect of college tuition, especially depending on where your children go to university and how many children you will have attending. Fortunately, the team at Russell Wealth Management can work with you on establishing a 529 college savings plan that not only allows for saving money for college but also allows it to be withdrawn tax-free as long as the money goes toward education. This means that you are not taxed on any gains that are acquired as the money grows in the account.
Here are some key considerations as it pertains to a college savings plan:
- Most states offer tax breaks
- Age-relevant portfolios should be considered determined on how long the child has until attending college (think of this like retirement planning and your level of risk tolerance)
- Different plans may have underlying fees and maintenance costs