| College Funding: It's never to early to
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| | as $200,000. With a Coverdell account,
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| get started with a tax free Savings
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| | the maximum contribution amount each year
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| Account!
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| | is just $2000, which is not much if
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| Each year the cost of college tuition and
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| | you're getting a late start on college
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| other college expenses seems to increase
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| | funding. However, with a 529 plan, you
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| in excess of the overall cost of living.
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| | must have a money manager, and with a
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| This makes it more and more difficult for
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| | Coverdell fund, you're in control of the
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| you to fund your children's college
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| | investments. Assets in a Coverdell fund
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| education. The key to being able to put
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| | belong to the student, which can reduce
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| your children through college is starting
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| | the amount of financial aid a student can
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| a college fund early in your child's
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| | receive. However, money in a 529 plan
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| life, so that the money has time to grow.
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| | belongs to the account owner. If you set
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| A tax fee savings account for college may
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| | the account up in the name of the
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| be the best way to go.
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| | parents, the amount in the account does
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| There are several types of tax free
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| | not affect financial aid.
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| savings accounts you can use for college.
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| | Finally - and this is a big one - money
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| The most popular are 529 accounts. Money
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| | set aside in a Coverdell account belongs
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| that you deposit into a 529 account is
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| | to the student and is controlled by them
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| money you've already been taxed on.
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| | once they turn 21. They can spend the
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| However, you won't pay taxes each year on
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| | money to go to school, or spend the money
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| the income the money in the account
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| | for a trip to Europe, or whatever they
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| earns. In addition, with a 529 plan, you
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| | want. With a 529 plan, the contributor
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| won't pay taxes on the money when it's
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| | (meaning you, the parent) has control
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| withdrawn, provided you use your
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| | over the money. In addition, with a 520
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| withdrawals only to pay for qualified
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| | tax free savings account, if Junior
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| college expenses, such as tuition, books,
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| | decides to forego the college education
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| and room and board.
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| | for that round the world trip, you can
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| There are other types of tax free savings
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| | redirect his college funds to his
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| accounts for college, including the
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| | education minded younger sister.
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| Coverdell Education Fund. This account
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| | Only you can decide which type of college
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| works much like a 529 tax free savings
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| | fund is best you and your child. The
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| account for college, but there are some
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| | most important thing is that you do
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| important differences.
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| | something as early as possible-your
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| First of all, with a 529 tax free savings
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| | children will grow up before you know
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| account for college, your maximum
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| | it-start your planning now.
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| contribution in a single year is as much
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