Student Savings
As a parent, you want to give your children every chance to chase their dreams, without the weight of overwhelming debt. That’s why our Student Savings and Loan offerings will help them (and you as their supportive parent) who are planning ahead and thinking big.
Help Your Child Plan and Think Big
With our college savings offerings, you have the tools to plan with confidence. We’re here to help make the journey more affordable and less stressful. Here is a breakdown of options to make confident choices today that pay off tomorrow (and beyond).
Roth Independent Retirement Account
Yes, it’s a retirement account, but it can also double as a smart way to save for college.
- Parents aged 59 1/2 and older can withdraw savings tax-free if the account has been open for at least five years.
- Parents under 59 1/2 may avoid early withdrawal penalties if the withdrawal is used for qualified college expenses.*
Advantage 529 Savings Account**
Popular. Consider this account your go-to for college planning.
- Contributions grow tax-deferred, and withdrawals are tax-free at the federal level if the money is used for qualified education expenses. States may also offer tax advantages.
- Choose from education savings plans or prepaid tuition plans.
- High lifetime contribution limits, typically $300,000.
- No restricted income level, making it accessible to a wide range of families.
- Some states also offer tax benefits.
Coverdell Education Savings Accounts**
More flexibility. More control.
- Contribute up to $2000 per year, per beneficiary.
- Use for qualified K-12 and college expenses.
- Grow your contributions tax-deferred; withdrawals are tax-free when used properly.
- Choose your investment. You’re in the driver’s seat.
- Income eligibility limits apply.
Let’s Not Forget the Custodial Account (UTMA/UGMA)
Custodial accounts under the Uniform Transfers to Minors Act (UTMA) and Uniform Gifts to Minors Act (UGMA) are a flexible way to gift your child a financial head start. You make the contributions. You manage the investments. Your child gets the benefit when they become an adult.
- Open an account in your child’s name, with you as custodian until they turn 18 or 21 depending on your state.
- Use the funds for anything that benefits your child, like education, a first car or college tuition.
- All contributions are irrevocable, meaning once it’s theirs, it’s theirs.
- Earnings and gains are taxed to your child, often at a lower rate.
Disclosure
*Piedmont Advantage does not provide tax or legal advice. This information is for informational purposes only and should not be relied upon for tax decisions. Consult your tax advisor regarding your individual situation.
**Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of Piedmont Advantage, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Piedmont Advantage has contracted with CFS to make non-deposit investment products and services available to credit union members.