Education Savings

 A 529 college savings plan lets you save money for a child's college or graduate school education in an individual investment account. Anyone can open an account with a particular plan and name someone as beneficiary. The beneficiary does not need to be related to you. The person who opens the account is maintains control of the account, unlike a UTMA.

  • Contributions grow tax deferred
  • Withdrawals used for the beneficiary's qualified education expenses are federal income tax free
  • Contributions receive favorable federal gift and estate tax treatment
  • Funds can be used at virtually any college
  • Participation is not restricted by income level
  • Total lifetime contributions limits are high
  • Professional money management
  • Investors should carefully consider the investment objectives, risks, charges and expenses associated with 529 plans before investing. This and other information about 529 plans is available in the issuer's official statement and should be read carefully before investing. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. The tax implications can vary significantly from state to state. Investors should consult a tax advisor about any state tax consequences.

Visit the IRS for more information

Coverdell Education Savings Accounts

A Coverdell Education Savings Account (ESA) offers a way to save for a child's education — from elementary/secondary all the way up to post-graduate studies — with tax-free earnings until funds are distributed.

  • ANB sets up ESA offerings as a one-year IRA
  • $2,000 per year maximum contribution
  • After the child is 18 years old, you can no longer make contributions to this account
  • The money must be used strictly for qualified educational expenses
  • There are limits on the amount that any individual can contribute for any one designated beneficiary for each year

Learn More about Coverdell Education Savings Accounts

Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability.


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