College Savings Plans

529 plans are by far the most popular way to save for college. These state-sponsored accounts grow on a tax-free basis and allow for tax-free withdraws if used for qualified education expenses. Check out other savings options that might be right for you.

Costs will depend on the type of school you're aiming for—private or public. First up, decide how much of your child's education you want to cover. Do you want to pay a percentage? A specific dollar amount? Or maybe all of it? Once you've got that settled, you'll need to figure out which type of savings account (or accounts) will best fit into your overall financial plan. Need help? Our financial advisors are here for you. Get matched with one today.

Contributions to college saving plans like a 529 and Coverdell account will grow tax-free, and are usually exempt from federal income taxes. Plus, many states offer tax deductions for 529 plans.

Anyone can open a 529 account in their home state, or in any other state. Once you've established an account, you'll choose the type of investment (usually mutual funds) you want to invest in. The money contributed will grow on a tax-deferred basis until it is withdrawn. As long as the money is used for qualified education expenses, it will be tax free. Connect with an advisor to see if a 529 plan is right for your education funding goals.

Anyone who lives in the United States and is aged 18 and over can open a 529 or Coverdell account. And anyone can contribute money to help pay for a child's education—parents, grandparents, aunts, uncles, cousins, even friends. Find out more on how to set up your 529 plan.

No. You can use a 529 plan from any state to pay for qualified expenses in any other state. So, you can use funds from a 529 plan in Oregon to pay for college in New York. From a tax perspective, there could be tax deductions or credits that you can take advantage of based on contributions to a particular state's 529 plan. Ask a financial advisor which 529 plan is best for you, get matched with one today.

The good thing is there are no deadlines to use the money you've accumulated, so you have time to weigh your options. Here's what you consider:

• Change the beneficiary to another family member including yourself.
• Use the remaining money to repay up to $10K of student loans.
• Cash it out (a non-qualified withdrawal could trigger penalties and taxes).

Talk to an advisor about which option might be right for you. Get matched today.