College Financial Planning

529 College Savings Plan

A 529 College Savings Plan is a widely embraced approach for the college financial planning, particularly among high net worth individuals.

Tax Advantage of 529 College Savings Plan

Tax Free Contribution for State Income Tax

Contribution to the plan qualifies for state income deduction, offering tax benefits.

Estate planning and accelerating gifting

You can contribute up to $16,000 per year (or $32,000 for married couples filing jointly) without incurring federal gift taxes. Alternatively, you can make a special election that allows you to make a single $80,000 contribution (or $160,000 for married couples) as if it were made over a five-year period.

Tax-Free Growth for Earnings

The funds in your 529 Plan experience tax-free growth at the state and federal level.

Tax-Free Withdrawals

Withdrawals for qualified higher education expenses at eligible educational institutions are exempt from federal and state income taxes.

College Financial Aid

For most students, having some type of financial aid to help pay for college is an important resource. Before each year of college, apply for federal grants, work-study, and loans with the Free Application for Federal Student Aid (FAFSA®) form. Your college uses your FAFSA data to determine your federal aid eligibility. Many states and colleges use FAFSA data to award their own aid.

The Expected Family Contribution (EFC)

Colleges figure out how much financial aid they will offer you, in part, by calculating your expected family contribution (EFC). Your EFC is a measure of your family’s financial strength. It’s a number calculated using the information you give about your family’s circumstances.

How Is Expected Family Contribution (EFC) Calculated?

Two closely related formulas are used to determine your Expected Family Contribution (EFC). The federal government uses the Federal Methodology, while many colleges use the Institutional Methodology. Both formulas evaluate factors like your family's financial resources, family size, and the number of family numbers in college to determine your EFC.

We are here to help!

What constitutes income for college financial aid? Is your child eligible for financial assistance? Which assets are factored into the FAFSA calculation (Free Application for Federal Student Aid)? We're here to assist with your college financial planning needs.