Prepaid Tuition Plans and Savings Plan Trusts (2)

POSTED BY on Jun 11 under Tuition

The federal tax on a prepaid tuition plan, as well as the income generated through plan investments, is deferrable until the funds are used to pay for college. At that point the money is taxed at the student’s then-current tax rate, which is extremely beneficial because the student’s tax rate is typically the lowest tax [...]

Prepaid Tuition Plans and Savings Plan Trusts

POSTED BY on Jun 7 under Tuition

There are two forms of college savings programs offered in many states: prepaid tuition plans and savings plan trusts. According to Miles A. Rubin, a vice president of investments at Paine Webber in New York City, most prepaid tuition plans allow participants to begin paying college tuition costs when the future student is still an [...]

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