| How much can you invest? | Varies by State. Typically $15,000$30,000 |
| Who controls the account? | Account owner, not beneficiary |
| Tax Treatment | Tax deferred growth
Qualified withdrawals are tax free |
| Restrictions on using the money | Withdrawals must be used for a wide range of qualified higher education expenses
Often limited to instate schools |
| Financial Aid Considerations | Withdrawals reduce financial aid dollarfordollar under the federal aid formula |
| Advantages | Low participation costs
No family income restrictions Contributions can be made by anyone |
| Disadvantages | Some states won’t allow use for outofstate schools
Traditionally offer fixed, low rate of return Tax and 10% penalty on earnings for nonqualified withdrawals |
Guarantees offered by insurance company and their claims paying ability not Tidewater Financial Group, Bruce F. Williams or Investors Security Company, Inc.
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