How to save for college

With ever-rising tuition, it’s important to start saving for college today. A good place to start is with the popular 529 Plan.

When it comes to college savings plans, not many beat the 529 Plan; it offers tax advantages that other accounts can’t. For example, distributions from a 529 Plan are exempt from federal income tax when used for qualified higher education expenses. And those expenses are rather broad, including computers, books, tuition, lab fees and even off-campus housing up to the allowance for room and board.

Best of all, the 529 Plan can be prepaid or added to over time. With the prepaid option, you can buy tuition credits at today’s rates. As long as tuition prices keep going up, you’ll come out ahead. With the savings option, you simply add to the account on an ongoing basis.

Whatever option you choose, even if it’s simply a secure savings account, the important thing is to start saving right away. If time is on your side, those deposits will add up.

* Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA / SIPC ) and SEC Registered Investment Advisor.  Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

Investors should consider investment objectives, risks, and charges associated with Section 529 plans prior to investing. More information about municipal fund securities is available in the issuer’s official statement which should be read carefully prior to investing. Most 529 plans are sponsored and administered by states. State tax benefits vary among the states, and some offer residents additional tax benefits if they invest in their own state plan. Consult your tax advisor for more information.