Presented by Carrie A. Gilchrist, Ph.D. Oakland University Choosing the Right Investments: Smart Saving for College.

Slides:



Advertisements
Similar presentations
POST 9/11 GI BILL CHAPT. 33. When Can I Receive Benefits? Benefits are payable for training pursued on or after August 1, 2009 No payments can be made.
Advertisements

Tax Benefits of Education Circular 230 Disclaimer Any tax advice contained in the body of this presentation was not intended or written to be used, and.
TAXES & EDUCATIONAL CREDITS FOR STUDENTS & PARENTS Presented By Joseph R. Maggitti Sr., MBA James Hudson, CPA, MBA Harold Singletary.
2010 Cengage Learning Income Tax Fundamentals 2010 Gerald E. Whittenburg Martha Altus-Buller Students Copy.
Warm Up Do you know anyone with student loans?
How it All Works… Scholarships and Financial Aid.
Financial Aid & College Financing  Financial Aid Overview  Four Steps to Financial Aid  Types of Financial Aid  Saving for College 
Paying for College Financial Aid Overview. College Expenses Tuition & Fees Room & Board Books & Supplies Transportation Miscellaneous Personal Expenses.
 Build a retirement fund  Afford child’s education  Do NOT rely on Social Security for your retirement.
HOWARD COMMUNITY COLLEGE FINANCIAL AID SERVICES You Can Afford College! 1.
Federal Benefits and Post 9/11 GI Bill V A Benefits POC: MSG Ramsdell X9700/84661.
POST 9/11 GI BILL EFFECTIVE 01 AUGUST POST 9/11 GI BILL  The new GI Bill becomes effective 01 August 2009 – any class / program taken before that.
Post-9/11 GI Bill Eligibility Benefit payments Transfer to dependents
PART 3 OF THE COFFEE WITH THE COUNSELORS SERIES NICOLE SAYRE- 6 TH GRADE KEVIN SIEGEL- 7 TH GRADE GINA YANNARELL- 8 TH GRADE Saving For Your Child’s Future.
P E R S O N A L F I N A N C I A L M A N A G E M E N T P R O G R A M Paying for College 1.
CREDITS: EDUCATION CREDITS. EDUCATION CREDITS  These credits are available to taxpayers who paid qualified education expenses for themselves, a spouse,
Educational Credits. Educational credits are credits to the taxpayer for qualified tuition and related expenses incurred by the taxpayer, spouse, or dependent.
Tax Benefits for Higher Education
Investing in the Future of Your Children: Their Education.
1 College Financing Seminar Presented by: The Massachusetts Association of Student Financial Aid Administrators (MASFAA)
Making Cents Clay Community Center September 12, 2013 PAYING FOR COLLEGE.
Howard Community College Financial Aid Services 1.
Presented by Joanne Graziano Assistant Provost and Executive Director of Admissions and Recruitment Long Island University- C.W. Post.
Education Funding Alternatives (including what to do with over-funded UGMAs/UTMAs) Carl Waldman, Esq. and Rich Linsday The Advisors Forum April 22, 2009.
Basic B volunteer training Tax year Federal nonrefundable and refundable credits NEW: Premium Tax Credit and related credit “reconciliation” Exemptions.
Planning for a Child’s Education Jerome Brooks David Sevy Tobi Vincent.
Funding your child’s college education Vince Hilton Jared Peterson Brian King.
John Dickinson, Internal Revenue Service Kelsey Merrick, National Economic Council December FSA Training Conference for Financial Aid Professionals.
1 Important Information for 2012 Returns American Opportunity Tax Credit Lifetime Learning Tax Credit Tuition and Fees Deduction Qualified Tuition Programs.
Topic 6 Education Planning. Topic 6: Education Planning Learning Objectives – (a) Calculate the funds needed to meet the education goals of a client.
What Every Financial Aid Professional Ought to Know.
1 Financing Your Education A Partnership between Government, School and Family.
1 Important Information for 2011 Returns American Opportunity Tax Credit Lifetime Learning Tax Credit Tuition and Fees Deduction Qualified Tuition Programs.
CHAPTER 7 Educational Planning Chapter 7: Educational Planning 1.
Optional Health Care Plan H S A Q&A Fall 2013 A Qualified High Deductible Health Care Plan (QHDHCP) with a Health Savings Account (H S A)
CHAPTER 6 Credits & Special Taxes 2011 Cengage Learning Income Tax Fundamentals 2011 Gerald E. Whittenburg Martha Altus-Buller Student’s Copy.
Slides by Pamela L. Hall Western Washington University 1 Financing a College Education Chapter 15.
Saving for Education Education Funding. What We Will Cover Before you invest for school Three Important Facts The Cost of College The College Funding.
Education Credits 1. What is a Tax Credit Credits are designed to offset tax liability Refundable credits Nonrefundable credits American Opportunity is.
Eligibility for the Post-9/11 GI Bill Veterans who have served at least 90 days of active duty service after September 10, 2001 and received an honorable.
Oklahoma’s 529 College Savings Plan (OCSP). The Cost of College Use our College Planner Mobile App to learn more. Based on four years of average tuition.
Level 3, 4, 5 Returns O Scholarships O 1099-MISC O SSA-1099.
TAX-AIDE Education Credits American Opportunities Credit Lifetime Learning Credit NTTC Training –
©2007 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. CHAPTER.
Planning INFLATION- the general rise in price of goods and services (savings must exceed) You have to have a plan for retirement Years ago companies had.
Gregory Ford | Dec Internal Revenue Service 2013 FSA Training Conference for Financial Aid Professionals What You Need to Know About Education Tax.
Financing Higher Education IBM Objectives Students will: Define Higher Education Define Higher Education Discuss Higher Education as an Investment.
1 Investing for College Financial Planning for Women Jean Lown, FCHD Dept., USU Tiffany Smith, student.
CHAPTER 6 Credits & Special Taxes 2014 Cengage Learning Income Tax Fundamentals 2014 Student Slides Gerald E. Whittenburg Martha Altus-Buller Steven Gill.
1 Investing for College Financial Planning for Women Jean Lown, FCHD Dept., USU Tiffany Smith, student.
Final NJ Training TY Education Credits American Opportunity (Hope) & Lifetime Learning Credits Pub 17 – Chapter 35 Pub 4012 – Tab G and.
Education Benefits American Opportunities Credit
Basic Questions Q: What is a 529 Plan? A: A 529 Plan helps families set aside money for their child’s future college cost. Q: Who can open a 529 Plan?
FINANCIAL AID Ms.Escoto. ancial_aid_in_the_bag.
529 Plans Kaitlyn Barrick. What is a 529 plan? A 529 plan is an education savings plan run by a state or educational institution created to help families.
Post 9/11 GI Bill Charles Rowe Bureau Chief State Approving Agency Post 9/11 GI Bill November 2015.
Pub 17 Chapter 35 Pub 4012 Tab J (Federal 1040-Lines 50 & 68)
National Association of Student Financial Aid Administrators Presents… © NASFAA 2010 Filling the Piggybank: Saving for College.
College Bound Personal Finance for College. Take Stock Where are you now? – How long before college? – How much have you saved? – What is your current.
Career & Financial Management
Louisiana’s First Choice for College Access
HDFS 383 Application Exercise 3.8.
Adjustments to income Spring 2018, lamc.
Education credits Spring 2018, lamc.
Wait Til I get my Money Right
Education Benefits Pub 4012 Tab J and Legislative Extenders
Education Funding Tools
Adjustments to Income.
Providing for Your Child’s Education
Presentation transcript:

presented by Carrie A. Gilchrist, Ph.D. Oakland University Choosing the Right Investments: Smart Saving for College

Smart Saving for College Do you know how much college costs? Do you know how much money you need to save? Do you know the many different tax advantaged ways to save for college?

Smart Saving for College Costs to consider: Tuition Housing – on or off campus Books Transportation Miscellaneous living expenses

Smart Saving for College

How will saving and investing affect my eligibility for aid? The impact on financial aid varies depending on whether the savings belong to the parent or the child. Savings in a parent’s name can reduce federal financial aid eligibility by at most 5.64% Assets saved in a child’s name can reduce aid eligibility by as much as 20% 529 accounts owned by a child or set up as a custodial 529 account are treated at the lower 5.64%

Smart Saving for College Education Benefits for Service members – Post 9/11 GI Bill Pays for education and housing costs for service members and veterans who served at least 90 days of aggregate service on or after September 11, 2001 Eligible veterans can claim benefits for up to 15 years after leaving the military Funds: undergraduate, graduate, on-the-job-training, apprenticeship programs, flight schools, and other non-degree seeking programs

Smart Saving for College Education Benefits for Service Members – Post 9/11 GI Bill Tuition and fee reimbursement All in-state tuition and fee charges are reimbursed at public institutions For private and foreign institutions have a benefit cap A stipend for books and supplies A monthly housing allowance Ability to transfer unused educational benefits to spouse and children

Smart Saving for College Tax-Advantaged Alternatives 529 plans Prepaid tuition plans College savings plans Coverdell Education Savings Accounts Custodial accounts UGMA/UTMA Savings bonds

Smart Saving for College 529 plans Contributions can vary and are only limited by the maximum and minimum contribution limits set by most plans. In most states, the maximum amount that you can contribute for one beneficiary exceeds $250,000. Number of investment options Common fees: Enrollment fee Annual maintenance fee Sales charge (Front-End Sales Load) Deferred Sales Charge Administration/Management Fee Underlying Fund Expenses

Smart Saving for College Coverdell Education Savings Accounts Except for investing in life insurance contracts, you can buy and sell what you want whenever you want. Also, you can set them up at almost any brokerage firm, mutual-fund company or other financial institution. contributions are not deductible, but earnings in ESAs are tax-deferred, and withdrawals that are used for qualified education expenses are tax-free. tax-free withdrawals to pay for private elementary and high school expenses, as well as post-secondary school expenses Limited to $2000 in contributions per year

Smart Saving for College Custodial accounts Your investing options are virtually limitless and there are no contribution or income limitations. Withdrawals can be used for any purpose, not just qualified education expenses, without penalty. In tax year 2013, for children younger than 19 or younger than 24 if a full-time student, the first $950 of unearned income is tax-free. The next $950 is taxed at the child's federal tax rate. Any earnings over $1,900 are taxed at the custodian's federal tax rate. UGMA/UTMA

Smart Saving for College Savings bonds Backed by the full faith and credit of the United States government, the interest from these bonds is tax-free if used for qualified higher education expenses. Income limits apply

Smart Saving for College

College Tax Credits American Opportunity Credit This credit reduces the amount of income tax you may have to pay. available for four years of college and can be used for course materials, in addition to tuition and fees This credit has a maximum credit of $2,500 per student Student must be pursuing a degree, going to school at least half time and not have a felony drug conviction Income limits apply

Smart Saving for College College Tax Credits Lifetime Learning Credit Allows you to claim up to 20% of the first $10,000 paid for college tuition and fees, for a maximum credit of $2,000 per tax return There is no limit on the number of years you can claim the Lifetime Learning Credit Can be used for under-graduate and graduate courses and even for tuition and fees when the student attends half time. Income limits apply

Smart Saving for College Resources

Choosing the Right Investments