Rising tuition costs make planning for education more important than ever. We'll help you navigate 529 plans, Coverdell ESAs, and custodial accounts so your children can pursue their dreams without undue financial burden.
The earlier you begin funding a child's education, the more time your investments have to grow through compounding. Education savings accounts also come with significant tax benefits that can reduce overall costs.
Whether you're a new parent, a grandparent, or planning for future family expenses, we'll help you evaluate your options and build a savings strategy that works for your family.
State-sponsored savings plans designed for qualified higher-education expenses. Contributions grow tax-deferred and withdrawals used for tuition, room and board, books, and other qualified expenses are generally tax-free. Some states offer deductions or credits for contributions.
Allow up to $2,000 per year per beneficiary with tax-free growth when used for qualified education costs. Funds can be used for K-12 expenses as well as college tuition, but contributions phase out at higher income levels.
Assets are irrevocably transferred to a minor but can be used for any purpose, not just education. Earnings are subject to the "kiddie tax" and ownership transfers to the child at the age of majority.
Tuition and living expenses vary widely across the country, from major universities to community colleges. Many parents hope to send children to top schools while balancing other financial priorities.
We analyze costs for public and private institutions, account for scholarships and financial aid, and project inflation so you know how much to save. Our plans are flexible enough to adapt if your child decides to study abroad or pursue different educational paths.
Education is a central value in many households. Grandparents often contribute to college funds, and extended family members may want to share in supporting a child's future.
We honor these traditions by including relatives in planning discussions and offering tools to coordinate contributions. Whether you're funding a 529 plan or setting up other savings vehicles, we'll help you manage contributions efficiently.
Each savings vehicle has unique tax benefits and flexibility
| Feature | 529 Plan | Coverdell ESA | Custodial (UGMA/UTMA) |
|---|---|---|---|
| Contribution Limit | High; varies by state, often $300k+ | $2,000 per year per child | No formal limit (gift tax rules apply) |
| Tax Treatment | Tax-deferred growth; tax-free withdrawals for qualified expenses | Same as 529; earnings tax-free if used for education | Earnings taxed at child's rate under kiddie tax rules |
| Use of Funds | Higher-education and certain K-12 expenses | Qualified K-12 and college expenses | Any purpose that benefits the child |
| Control | Account owner retains control and can change beneficiaries | Control until beneficiary reaches age 30 | Irrevocable; beneficiary gains control at majority |
The best time is as early as possible – ideally at birth or even before. Starting early gives your investments more time to grow through compounding. Even small monthly contributions can add up significantly over 18 years.
You can change the beneficiary to another family member (sibling, cousin, or even yourself). Starting in 2024, unused 529 funds can also be rolled over into a Roth IRA for the beneficiary, subject to certain limits and conditions.
529 plans owned by a parent are considered parental assets on the FAFSA, which has a smaller impact on financial aid eligibility (up to 5.64% of the asset value) compared to assets in the student's name. Grandparent-owned 529s no longer count against aid eligibility under current rules.
Custodial accounts offer more flexibility since funds can be used for any purpose, but they come with drawbacks: earnings are taxable, the child gains full control at majority, and they have a larger impact on financial aid. 529 plans are usually better for dedicated education savings due to tax advantages.
Education is a gift that lasts a lifetime. Our personalized approach helps you maximize tax benefits and stay on track with savings goals. All consultations are free, and we never charge hidden fees.
Want to build a brighter future for your children? Let's compare 529 plans, ESAs, and custodial accounts during a free consultation.