Why have an account just for college?
It's easy to see the progress you're making toward your goal when you have an account just for your college savings.
Tax updates coming soon
We're working on updates that will reflect the new U.S. tax law. In the meantime, this page may not address this development.
In summary, the law expands 529 plans to include tax-free distributions of up to $10,000 per year per student to pay for K-12 expenses. Currently, 529 plans offer tax-free withdrawals only for college expenses.
We recommend that you consult a qualified tax advisor about your personal situation.
The benefit of keeping your money separate
You may be planning on using a bank account to save for college and wondering why your money can't just stay there.
It's a good question, but there are really great reasons for keeping your college money separate from your other accounts.
For one thing, you can find an account type that's much better aligned with your overall goal. For instance, if you're looking to earn money on your investment or you're interested in getting tax breaks, a bank account may not be your best option.
Having a separate account also lets you see at a glance exactly how much you've saved specifically for college.
Keep in mind:
If you're good with money, you're probably used to checking your accounts daily or at least every couple of weeks. It's a great habit to get into when it comes to your bank and credit card accounts, but not so much with your college account.
You probably won't need the money for a while, so you should be able to leave your account alone. Having your college money in a separate account will make this much easier.
Decision time: Which account is best for you?
To figure out which type of college savings account works best for your family, you'll need to think about what's most important to you.
We're here to help
Talk with one of our education savings specialists.
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