Paying for college.Q A I have two sons, one is eight and the oldest is 13. I recently came into a lump sum Lump sum A large one-time payment of money. of money, a little over $15,000. I want to start a college savings for them. Should I look to invest in a 529 college savings plan, a prepaid state tuition program, or an education-type IRA Ira, in the Bible Ira (ī`rə), in the Bible. 1 Chief officer of David. 2, 3 Two of David's guard. IRA, abbreviation IRA. ? Where can't get information? --M. Williams Via the Internet For younger children, financial planners generally recommend college savings plans. For middle school children, they recommend prepaid plans, especially if the parent knows the child is more likely to go to school in state, However, in your case, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. no longer has a state prepaid tuition program. You should look to contribute to both a 529 college savings plan and a Coverdell education savings account Coverdell Education Savings Account A special individual retirement account opened on behalf of a child under age 18. Contributions of up to $2,000 annually may be made by anyone who meets specified income limits. . Both are tax-advantaged savings vehicles. Money withdrawn from either plan to pay for qualified education expenses is free from federal income tax. The annual contribution for Coverdell ESAs is $2,000 per beneficiary. You control the types of investments in the account. With a 529 plan, you can contribute up to $200,000, but you are beholden be·hold·en adj. Owing something, such as gratitude, to another; indebted. [Middle English biholden, past participle of biholden, to observe; see behold. to that state plan's investment options. For information on college savings plans, visit the College Foundation of North Carolina at www.cfnc.org. Check out www.saving forcollege.com, which rates state programs on a scale. Also, access information from the College Savings Network (www.collegesavings.org), FinAid (www.finaid.org), and the College Board (www.collegeboard.com). --Carolyn M. Brown Mail your money management questions to Honey Hatters., BLACK ENTERPRISE 130 Fifth Ave., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 or send an e-mail to brownc@blackenterprise.com. |
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