There are many varieties of Educational Plans available that allow you to provide for your children's future. Making the right decision can be difficult based on many circumstances so it is always recommended that you talk to a Paisley Advisor before selection has been made.
A 529 plan is a tax-advantaged investment vehicle in the United States designed to encourage saving for the future
higher education expenses of a designated beneficiary.
Money from a 529 plan can be used for tuition, fees, books, supplies and equipment required for study at any accredited college, university or vocational school in the United States and at some foreign universities. The money can also be used for room and board, as long as the fund beneficiary is at least a half-time student. Off-campus housing costs are covered up to the allowance for room and board that the college includes in its cost of attendance for federal financial-aid purposes.
A Coverdell Education Savings is a tax-advantaged investment account designed to encourage savings to cover future education expenses (elementary, secondary or college), such as tuition, books, uniform etc…
The tax treatment of Coverdell ESA's is much the same as that of 529 plans with a few important differences. Like a 529 plan, Coverdell ESA's allow money to grow tax deferred and proceeds to be withdrawn tax free for qualified education expenses at a qualified institution. However the definition of qualified expenses in an ESA includes primary and secondary school, not just college and university.
There are many differences between a 529 and a Coverdell. COntact a Paisley Advsior to have them help you detemine which is right for you.