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Funding an Education:
What Plan Is Right for You?

Funding an Education: What Plan Is Right for You?
Back-up Plan
Tax Efficient
Early IRA Withdrawals
Who Chooses This option?
Example: The Grandparents Combination
Save Now for Later
529 Plan Account
Quick overview
Income tax savings
Beneficiary Changes
Who chooses this option?
Example: Many Grandchildren
UTMA Account
Who Uses This Option?
Example: A Financial Education

Pros and Cons At-a-glance

Pros and Cons of Education Funding Options
Options Pros Cons

Quick Comparisons of the Options

Quick Comparisons of the Options
An Ideal Combination
2 Grandparents
Paying current costs Fund private tuition bills directly (these are non-taxable gifts), starting when each student enters pre-school.
Saving for future costs – Make annual exclusion gifts each year to 529 plan accounts established for each of the three children.
2 Parents
UTMA Accounts for each child

Depending upon the laws of the home state of the customer or designated beneficiary, favorable state tax treatment or other benefits offered by such home state for investing in 529 Plans may be available only if the customer invests in the home state‘s 529 Plan. Any state-based benefit offered with respect to a particular 529 Plan should be one of many appropriately weighted factors to be considered in making an investment decision; and you should consult with your financial, tax or other adviser to learn more about how state-based benefits (including any limitations) would apply to your specific circumstances.


The information within this document is being provided for informational and educational purposes only. It is not intended to provide specific advice or recommendations for any individual. You should carefully consider your needs and objectives before making any decisions. For specific guidance on how this information should be applied to your situation, you should consult the appropriate financial professional.


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