- Planning for Your Children's College Education
- Tax Savings Opportunities
- Big Picture Preview
- Fund Your Retirement Plans First
- Don't Agonize–Get Active
As long as it is in line with your priorities and your financial plan, you should typically fund your tax-advantaged retirement plans before funding your college investment program. Your financial future is important and that should be your primary focus.
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An Argument for Funding Your Retirement Plans First |
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Retirement Plans* |
College Investment Program |
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The investments you make toward most retirement plans are tax-advantaged.1 |
The investments you make toward college funding programs may not be tax-advantaged. |
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The income earned in most retirement plans is not taxed until you take it out at retirement.1 |
The income earned in college funding accounts may be taxed currently (there are some exceptions such as Series EE and Series I Savings Bonds, Education Savings Accounts, and Qualified Tuition Programs). |
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Retirement plan assets are not typically considered assets when you apply for financial aid. This increases your chances of getting financial aid. |
Assets accumulated in college investment accounts may decrease the chances of getting financial aid. |
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Having your financial future funded gives you the confidence to help your children in many ways, not just helping them find ways to pay for college. |
If you fund college and you're not making progress on your own financial future, not only are you giving up tax benefits, you're putting your own financial future at risk. |
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*IRAs, 401(k) plans, 403(b) plans, Keoghs, etc. 1 Contributions to a Roth IRA are not tax deductible. The Roth IRA offers tax-deferred growth of your investments. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 1/2 may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.
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- ARE NOT A DEPOSIT
- ARE NOT FDIC-INSURED
- ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
- ARE NOT GUARANTEED BY THE BANK
- MAY GO DOWN IN VALUE
Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.
