4 Ways to Save for College

1. 529 Plan 

   1. earnings from a 529 plan grow tax-free

   2.  can be used to cover educational expenses from kindergarten through graduate school

   3. Type Types of 529 Plans 

      1. Savings Plan

         •  typically invested in a selection of mutual funds

         • can be used for both college and K-12 expenses

      2. Prepaid Tuition Plan 

         • are offered by a limited number of states and some higher education institutions

         •  do not cover room and board

2. Education Savings Account

   1. Contributions must be made before the child turns 18

   2. Anyone can contribute to this account as long as the total contributions for the child don’t exceed $2,000 annually. 

3. Roth IRA

   1. owner of a Roth IRA must have earned income

   2. an individual retirement account under United States law that is generally not taxed upon distribution

4. Uniform Transfers to Minors Act/Uniform Gifts to Minors Act 

   1. allows a minor to receive gifts—such as money, patents, royalties, real estate, and fine art

   2. a way to build a tax-free savings account for minor children