We all want to save money on our taxes....right? Consider funding the cost of future college tuition by contributing to a state sponsored or private section 529 paln. Contributions to such plans are not subject to the same limitations that apply to Coverdell ESA's. Earnings on contributions to state sponsored and private section 529 plans will not be subject to federal tax when withdrawn, provide the distributions are used to pay for beneficiary's higher eduction expenses.
For more information about this tax saving tip, check out IRS Pub 970 (Section 529 plans)
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Pursuant to applicable U.S. Treasury Regulations, we must advise you that any tax advice included in this communication is not intended or written to be used, and cannot be used, by a recipient for avoiding penalties that may be imposed on the recipient by any governmental taxing authority or agency.