Saving Taxes
- Introduction
- The Coverdell Education Savings Account and Additional Federal Tax Credit Programs
- Qualified Tuition Programs (QTPs) / 529 Plans
- Series EE and Series I Savings Bonds
- Who Should Own the Investments?
Introduction
Most people make investments with an eye toward saving on taxes, and college investments are no exception. A Coverdell Education Savings Account is one vehicle in which earnings grow tax-deferred, and are never taxed if they are used for the beneficiary's qualified education expenses.
Qualified tuition programs are generally tax-favored, and make it possible for you to make contributions now toward education expenses in the future. Interest in Series EE and Series I Savings Bonds grows tax-deferred, and may never be taxed if the bonds are redeemed in a year when you pay your child's college tuition.
You also need to determine who should own the investments that are going towards your child's education. That decision will be made, in part, based on your tax bracket, whether or not you qualify for financial aid and your net worth.Share Article:
*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. General Electric Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.