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Article: COLLEGE SAVINGS... WITHOUT LIMITS!(Qualified State Tuition Programs)(Brief Article)(Statistical Data Included)
- Article from:
- Hawaii Business
- Article date:
- May 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 Hawaii Business Publishing Co. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Qualified State Tuition Programs may be the key to saving for your child's college education.
Three methods for saving for your child's college education can be custodial accounts, education IRAs or section 529 college savings plans. Custodial accounts are taxed currently and revert to ownership of the child upon majority age. The first $700 of earnings are tax-free. The next $700 of earnings are
taxed at the child's rate. Annual earnings above $1,400 are taxed at the parent's highest marginal tax rate for children under 14 and at the child's rate for children age 14 and older.
Education Savings Accounts, or Education IRAs, allow nondeductible ...