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College Savings What We Offer

Investing in Potential with a 529 Savings Plan

College for a child or grandchild is worthy goal, and thanks to many financial solutions, an achievable one as well. 

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529 Prepaid Plans

These plans allow you to purchase a certain amount of tuition over time that is guaranteed to be equivalent to the same percentage of tuition in the future. Raymond James does not offer 529 prepaid plans. However, we can assist you in determining if a 529 prepaid plan is available in your state.

Benefits:

  • With tuition rates rising, these plans may be appropriate for some families.
  • States may allow contribution deductions from state income taxes
  • Value of contract is free from federal taxes if used for qualified higher education expenses
  • Locks in tuition at a known rate
  • Funds are not subject to market volatility



UGMA/UTMA Custodial Accounts  

This act allows you to transfer ownership of assets to your child without needing to establish a more costly trust.

Benefits:

  • While not specifically designed for education funding, these accounts can be advantageous as they allow you to accumulate funds in your child’s name.
  • Earnings from these investments may be taxed at your child’s lower rate (certain limits apply)
  • There are no annual contribution limits, but keep in mind that gifts into the account are subject to annual gifting rules
  • Transferring assets may lower the value of your portfolio, thus allowing you to avoid higher taxes
  • You may invest the funds on behalf of your child. We can provide investment advice that suits your goals for your child
  • As a custodian, you have many investment choices to choose from, including stocks, bonds and other investments



Coverdell Education Savings Accounts

Formerly known as the “Education IRA,” this savings alternative is a trust or custodial account used for education expenses. Raymond James does not offer Coverdell Education Savings Accounts as a custodian. However, we are contracted to offer these accounts through certain mutual fund companies.


Benefits

  • Coverdell Education Savings Accounts (ESAs) offer several advantages.
  • Earnings are free from federal taxes when withdrawn for qualified education expenses
  • Unlike most other education savings accounts, funds can be used for primary and secondary education in addition to higher education
  • You can contribute to a Coverdell Education Savings Account and a 529 savings plan during the same year
  • You have full investment control
  • Unused portions of the account may be transferred to another family member