I hope everyone had an enjoyable weekend. I am getting prepared to send my son to his new college in Maryland. He will be a sophomore at UMBC. It will be a happy and sad occasion but we have to let them fly😊 #EmptyNester #Blessed
Last week I mentioned I would discuss the Coverdell Education Savings Plan. Not too many parents know about this plan so I would like to share this information with you.
What Is The Coverdell Education Savings Plan?🤔
The Coverdell Savings Plan is another way that parents can save for their children’s college funding. This plan is similar to the 529 plan, such as playing the stock market, but it has a few differences. One difference is that you can only contribute a maximum of $2000 a year, whereas with the 529 it is $14000. Another difference is the funds for a Coverdell has to be used by the time the intended beneficiary reaches 30 or given to another family member under 30. With the 529, there is no age limit.
What if your child doesn’t want to go to college?🙄 (written exactly the same as the 529 article last week)
If the child does NOT go to college, the funds can be rolled over to another member of the family who will attend college OR can be withdrawn. If withdrawn for usage other than school, taxes must be paid on that amount.
Now that you have another college savings type to add to your arsenal, this gives you more decision making power. Fit the plan that works best for your situation.
If you have any questions, please feel free to comment here or email me at:email@example.com
Next week’s topic: What Is The Difference Between A 401K Retirement plan and a pension?
Have a beautiful and blessed week😊❤
Changing the lives in our community….one family at a time