Saving for College Education

Parents and Grandparents:

For most parents and grandparents, back to school means shopping for new clothes and supplies to make sure their children or grandchildren will have everything they need for a successful school year. But for some, it also signals the time to begin saving for their child's or grandchild's college education, so the opportunity to gain the skills and knowledge for a successful future will not be a hardship.

The following are a few benefits that 529 plans offer:

• Anyone can contribute up to $13,000 a year per beneficiary without exceeding gift and estate tax limits
• Invested earnings have the potential to accumulate tax−free
• Distributions used for qualified higher−education expenses are not subject to federal income taxes
• Investors receive professionally managed portfolios
• You maintain control over the account
• Accounts can be transferred to another family member to pay for qualified higher education expenses

Today’s children are tomorrow’s future. Begin investing in your child’s future today! To discuss how I can help you develop a college savings strategy, please call or stop by my office.

At your service,

Karen T. Soule                                                                                            Financial Advisor  

Edward Jones Investments  

535 Main St.

Winchester, MA 01890                                                                                     

Withdrawals used for expenses other than qualified education expenditures may be subject to federal and state taxes plus a 10 percent penalty on the earnings. Contributions may be eligible for a state tax deduction or credit in certain states for residents who participate in their own state’s plan. Please note that a 529 college savings plan could reduce a beneficiary’s ability to qualify for financial aid. Because tax issues for 529 plans can be complicated, please consult your tax advisor.