Qualified Tuition Programs (529 Plans): 529 Plans are among the best ways of saving for your child's college education. 529 Plans are tax-exempt college savings vehicles with a low impact on need-based financial aid eligibility. The tax law places no income restrictions on 529 Plan contributions. Anyone can contribute money on behalf of a beneficiary, including, friends, family, colleagues, and acquaintances. While plan contributions are not deductible on your federal return, benefits or distributions used for the account beneficiary's tuition and other qualified expenses are generally tax-free. In addition, there may be tax benefits associated with investing in the 529 Plan sponsored by the state within which you or the beneficiary reside. Consult a tax advisor for more information pertaining to your specific needs.
To learn more about Section 529 Plans, please contact your M&T Securities, Inc. Financial Consultant.
Coverdell Education Savings Account (ESA): Coverdell accounts are trusts or custodial accounts created exclusively for the purpose of paying the qualified education expenses of the designated beneficiary of the account. You are eligible to make annual account contributions up to $2,000 per beneficiary, until he/she turns 18. ESA account distributions for qualified expenses are generally tax free. An ESA may be used for elementary, secondary, or post-secondary education. Consult a tax advisor for more information.
To learn more about Coverdell ESA's, please contact your M&T Securities, Inc. Financial Consultant.
You can visit us at any M&T branch office, or call us at (800) 836-1500. We'll help you get started on an investment path that makes sense for you. Any services provided should not be taken as a substitute for tax advice. You should speak with your tax professional for specific tax information as it relates to your particular situation.
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