It’s never too soon to start planning for your child’s educational needs, regardless of their age. The costs associated with education can be overwhelming, but the earlier you begin saving, the longer your money can work for you.
Various investment plans offered by the States designed to help save for college.
Tax-advantaged way to save for college tuition and expenses. Depending on your state, plans offer income tax breaks on the non-deductible contributions.
Plan withdrawals will be free from federal tax as long as you use them for qualified education expenses like room and board, tuition, required books and supplies for higher education. States take different approaches to the income tax treatment of withdrawals.
Use plan to pay for K-12 tuition up to $10,000 per year per beneficiary.
Earnings grow tax deferred for as long the money is in the plan.
Account holder is in control of the assets, and may direct to beneficiary or the institution.