Setting your child up for a successful future is important. It’s never too early to establish an elementary or college education savings plan. Saving now can not only offset future education expenses, it can provide a variety of additional benefits. We will work with you to identify your savings priorities, determine how much you need to save, review your savings options, and make an informed decision on the best savings plan for you and your family.
529 College Savings Plan
529 College Savings Investment plans offer tax-free withdrawals when the money is used toward college education expenses. 529 plans come in two forms: pre-paid tuition plans and college savings plans.
Coverdell Education Savings Account (ESA)
Coverdell Education Savings Accounts (ESAs) allow annual contributions up to $2,000 to the beneficiary. The contributions can be invested tax-deferred and the proceeds withdrawn are tax free when used toward designated educational purchases. In addition to college tuition, ESAs may be used for K-12 expenses in certain situations.
The Uniform Gifts to Minors Act allows tax-free contributions up to $15,000 annually to a beneficiary without the need for a trust. Typically, these accounts cannot be accessed by the child until he or she turns 18.
|Not First Interstate Bank Guaranteed||Not First Interstate Bank Deposits or Obligations||Not Insured by FDIC or Any Other Government Agency||May Lose Value|