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Are you planning to help your children or grandchildren with their education expenses?  At Apple Creek Investments we are here to help you determine how much you'll need to save based on your priorities and situation.

College savings plan options:

Custodial Accounts (UGMA & UTMA)

This option allows you to make an irrevocable gift to a minor to an account that your child ultimately controls when he or she turns 18 or 21 (depending on state law). He or she can use the funds for tuition and other expenses, but the dollars do not have to be used for education.

529 college savings plans

529 plans are generally sponsored by states, state agencies or educational institutions for qualified kindergarten through 12th grade, private school and college tuition and expenses. These investment plans stay under your control and may offer certain tax and contribution advantages.1

 Coverdell Education Savings Account (CESA)

You can contribute to this investment account only until children turn 18 unless the child is a special needs beneficiary. This type of account can be used for elementary, secondary and college expenses and tuition. It may include tax benefits but has a maximum contribution limit of $2,000 per year.

Traditional/Roth IRAs

Penalty-free distributions are allowed from IRAs for eligible educational expenses for you, your children and your grandchildren. IRAs are not counted as assets for financial aid calculations, but withdrawals are considered financial aid income for parents (income taxes may apply to IRA and Roth IRA withdrawals). 2

If saving for college is an important financial goal for your family, let's talk about how you start a college plan for your children, grandchildren or even yourself. 


Try our College Calculator to estimate your savings needs.  Then we will show you how to address them.

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1  Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.

2  Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.  The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.