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College Savings and/or UTMA

The most important thing. . .family.

The most important thing. . .family.

At XCountry Financial, family is at the center of everything we do.  We help our clients get their children & grandchildren off to a fast start.  Student loan debt and lack of savings are two primary reasons that young adults struggle financially early in their lives.  What better way to help family, than to give them a leg up in life financially.

Two options we utilize to help our children:

529 College Savings Plans

A 529 plan is an investment account that offers tax-free earnings growth and tax-free withdrawals when the funds are used to pay for qualified education expenses. For college, university and other eligible post-secondary educational institutions, this includes tuition, fees, books, supplies, equipment, computers and sometimes room and board. 

Tax-free distributions may be used to repay federal and private student loans. 

Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state
offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available
for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment
at the state level may vary. Please consult with your tax advisor before investing.

Client Centered


UTMA accounts are custodial accounts, held in the name of the minor, but controlled by a parent or other relative until the child reaches the age of majority in your state.  UTMA accounts allow parents to save money and invest, maintain full control until their child is an adult.

Contributions are made with after-tax dollars. UTMA accounts provide more flexibility in how the funds can be used compared to a 529 plan.  While your child is still a minor, you can use the funds in the UTMA account to pay for expenses that benefit the child, such as clothes for school, athletic equipment and/or summer programs.

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Have a question on what's the best option, 529 or UTMA?  Contact us today.  We're happy to educate and help!

Thank you!