Redstone Federal Credit Union

6 | r e d f c u.o r g G iven national college costs go up every year, it's a wonder it's not called "higher (and higher) education." You do have options, however, to help your kids pay for college and keep post-grad debt down. Whether you're getting a jumpstart or you needed to start saving yesterday, here are some ways to work toward securing college funding. Tax-advantaged options 1 Like the idea of saving for college and saving on taxes? Consider a 529 College Savings Plan, Coverdell Education Savings Account or Roth IR A. All allow earnings to grow tax-free, and you won't pay taxes on withdrawals used for qualified education expenses. Be aware that one might work better for you than the other. 529 plans allow much higher contribution limits, but Coverdell ESAs and Roth IR As allow more flexibility in how the withdrawals are used, beyond just college expenses. 1 Securities and advisory services offered through LPL Financial, a registered investment advisor member FINR A/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. The investment products sold through LPL Financial are not insured Redstone Federal Credit Union ® deposits and are not NCUA insured. These products are not obligations of Redstone Federal Credit Union and are not endorsed, recommended, or guaranteed by Redstone Federal Credit Union or any government agency. The value of the investment may fluctuate, the return of the investment is not guaranteed, and loss of principal is possible. RFCU and Redstone Brokerage Services are not registered broker/dealers. LPL Financial is a separate entit y from and not affiliated with RFCU or Redstone Brokerage Services. RFCU does not warrant, guarantee, or insure any product or service offered by LPL or Redstone Brokerage Services. Redstone Brokerage Services and RFCU do not provide tax advice. Please consult your tax advisor before investing. Paying for Your Child's College Education Prepaid tuition plans Such plans, which allow you to pay tuition credits in advance at a predetermined, locked- in price, could be a good option if you're certain your child will go to an in-state public university. You still enjoy tax advantages similar to a 529 plan, but keep in mind that prepaid tuition plans typically only cover tuition costs – not necessarily room and board, books and grad school. Know the exact expenses your prepaid tuition plan covers, plus the tuition equivalent you'll get if your child opts for a private or out-of-state college. Prior to investing in a 529 plan, investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits, such as financial aid, scholarships, and protection from creditors that are only available for investments in the state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing. Get more information on paying for college at: redfcu.org/PlanningForCollege. å å

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