Additional Features

  • Qualified expenses may include tuition, fees, tutoring, books, and supplies — even the purchase of computer technology or equipment or Internet access used by the student and family when the student is in school.
  • Rollover of unused account funds, without penalty, to other family members under age 30
  • Non-deductible contributions may be made annually to each child's account
  • The deadline for contributions is the same as the contributor's tax filing deadline, not including extensions
  • Contributions cannot be made for a designated beneficiary who is over 18 years of age (unless the beneficiary is of special needs)

 

Services

 

  1. Withdrawals are tax and penalty free if used for qualified education expenses. Funds must be fully withdrawn when the beneficiary reaches age 30, and any amounts not used for qualified education expenses are subject to an additional 10% tax penalty.
  2. Based on an IRS formula, the allowed contribution is reduced when AGI (adjusted gross income) exceeds these limits.