Personal Finance
Personal Finance
College Planning Products

Dealing with the skyrocketing costs of college can be an eye-opening experience. It is estimated that the price tag of a public college education - tuition, room and board - will exceed $100,000 by the time your newborn child or grandchild comes of age. And for private institutions, the numbers are even more staggering. That's why it's important to start planning now.

529 College Savings Plans, Coverdell Education Savings Accounts and Custodial Accounts (UGMA/UTMA) are great tools to help you save for your child or grandchild's future college costs and expenses. Contact a PNC Investments Financial Advisor is available to help you determine which product best fits your needs and objectives. Use the guidelines below as a starting point.

What do you need to do? Things You May Wish to Consider Product
Make large contributions; transfer assets out of your estate; maintain control over account; defer taxes
  • Supports high contribution limits
  • Supports parents in high tax bracket
  • Provides little control over investment choices and decisions
  • Offers favorable tax treatment for qualified withdrawals
  • Provides complete control over account withdrawals and designated beneficiary
  • Levies penalties and taxes on non-qualified withdrawals
529 College Savings Plan
Make small annual contributions; make all investment decisions; defer taxes
  • Income is exempt from federal income tax
  • Limits annual contributions
  • Unavailable for parents in high tax bracket
  • Provides maximum control over investment choices and decisions
  • Offers favorable tax treatment for qualified withdrawals
  • Provides moderate control over account - beneficiary gains control at age 30
  • Levies penalties and taxes on non-qualified withdrawals
Coverdell Education Savings Account
Reduce your own taxes; transfer assets out of your estate; make all investment decisions; transfer control to your child at an early age
  • Supports high contribution limits
  • Supports parents in high tax bracket
  • Provides maximum control over investment choices and decisions
  • Supports withdrawals for any reason
  • Provides minimum control over account - beneficiary gains control at age of majority (18 or 21, depending upon your state)

Custodial Accounts (UGMA/UTMA)

 

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Securities and brokerage services are provided by PNC Investments LLC, a registered broker-dealer and investment adviser and member FINRA, and SIPC. Annuities and other insurance products are offered by PNC Insurance Services LLC, a licensed insurance agency.