Saving for Education

If you’ve ever thought about borrowing money from your company-sponsored retirement plan to fund your children’s higher education, consider a better alternative: an Education Savings Account.

An Education Savings Account allows you to save for your children’s education expenses on an after-tax basis. Your children may receive contributions of up to $2,000 each per year in an Education Savings Account until the age of 18. Contributions are not tax deductible.

Contributions and earnings may be withdrawn, income tax free, to help pay for education expenses that include:

• Tuition for elementary, secondary, and post-secondary education
• Room and board
• Fees
• Books
• Extended day programs
• Equipment and uniforms
• Computer equipment, software, or internet access used for educational purposes