There is more than one way to save for college by Terry Jannsen, managing shareholder of Pewaukee-based Jannsen & Company S.C.
With changes coming to Coverdell Education Savings Accounts in 2011, some parents are wondering if they should convert their Coverdells to 529 plans.
Coverdell ESAs were popular because they worked like a Roth IRA for college savings. Contributions to a Coverdell ESA aren’t deductible, but you get tax-deferred growth. Withdrawals from Coverdells are (currently) tax-free if used for qualified educational expenses such as tuition, fees and books, as well as certain K-12 education costs. Coverdell account assets can be allocated among many investment vehicles, and many banks, credit unions and mutual fund providers offer these accounts.
Read more here in the latest issue of BizTimes Milwaukee.