Are you planning for a child or grandchild’s college? Or, perhaps you’re planning on helping them with a first car or home purchase?
529s allow you to contribute a high amount that’s specifically allocated for college expenses. The account provides tax-deferred growth and tax-free withdrawals if used for college.
Educational IRAs are similar to 529s, with lower contribution limits (but still appropriate for many parents, and more investment flexibility).
UTMAs or UGMAs are accounts that are owned by the child, but not legally to be directed by them, until the ages of 18 or 21 generally. These types of accounts are ideal for putting money away for children or grandchildren for a variety of uses – home purchases, wedding expenses, college expenses, car purchases. They have a high degree of investment flexibility, with few tax advantages than 529s or Educational IRAs.
One of the most rewarding things we get do to is help parents and grandparents set these accounts up. Contact us to get started.