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Saving for college

Having a college fund set aside for a loved one can be a smart move for the future. And guess what? It can come with some tax benefits. Find out about the different account types so you can take action on the one that suits your needs.

529 college saving plan

A 529 plan is taxed advantaged, where contributions grow tax-free without income or age limits. Check the details about our 529 plan.
Open a 529 account

Education Savings Account

This allows you to set aside an account that covers your loved one’s educational expenses from creche, all through to college.
Download an Application

Custodial Account

Give a minor the chance to reap the benefits of compounded income when they’re all grown up.
Open a Custodial Account

More helpful resources

College Savings Calculator

College Planning

We Can Help

Call 877-735-6341 for help with college savings accounts.

Before investing, carefully consider the plan’s investment objectives, risks, charges, and expenses. This information and more about the plan can be found in the Schwab 529 Guide and Participation Agreement available from Charles Schwab & Co., Inc., and should be read carefully before investing. If you are not a Kansas taxpayer, consider before investing whether your or the beneficiary’s home state offers a 529 plan that provides its taxpayers with state tax and other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available in such state’s qualified tuition program. Tax and financial aid treatment of 529 plans is subject to change. As with any investment, it is possible to lose money by investing in this plan.

The Schwab 529 Education Savings Plan is available through Charles Schwab & Co., Inc. and is managed by American Century Investment Management, Inc. The plan was created by the Kansas State Legislature under the provisions of Section 529 of the Internal Revenue Code and is administered by the Kansas State Treasurer. Notice: Accounts established under the Schwab 529 Education Savings Plan and their earnings are neither insured nor guaranteed by the State of Kansas, the Kansas State Treasurer, American Century Investments®, or Charles Schwab & Co., Inc. Accounts established under the Schwab 529 Education Savings Plan are domiciled at American Century Investments and not Schwab.

American Century Investments receives remuneration from fund companies, including JP Morgan Funds, American Beacon Advisors, and Metropolitan West Management, LLC for recordkeeping, shareholder services, and other administrative services associated with funds held in the Schwab 529 Education Savings Plan portfolios. 

Planning for College

Funding a child’s college education requires a bit of research. Learn more on how you can go about it.

Here’s what you’ll find:
  • Set saving goals
  • Why you should start saving early
  • The first step to take

    • Set saving goals

    The cost of education keeps increasing as the years go by, and that’s regardless of inflation. College tuition fees can become outrageous by the time your child is ready for college. So to avoid being stranded at that point or going into debt, you should be intentional about setting saving goals.

    But have it in mind that you’ll be using part of the money you would otherwise use for your retirement. So make sure you’re strategic in your planning.

    Why you should start saving early

    With the rate at which college tuition fees continue to rise, It was predicted that a child born today will need over $300,000 to attend a state university for four years, and nearly double the amount to graduate from a private school.

    These numbers may sound high but it’s also equivalent to saving for retirement. That’s why you should start now. By investing and contributing regularly you’ll feel relief when it’s time for your child to go to college.

    The first step to take.

    • Open a college saving account for your loved one now, a little here, a little there your child’s future is secured.
    • And whichever option you choose, you’ll enjoy interests and tax benefits depending on your investing and contribution strategy.

    Get more details about FSL WEALTH MANAGEMENT Education and Custodial Accounts

    Take that step today with FSL WEALTH MANAGEMENT

    Open an Account

    Call 888-213-4695

    Already have a FSL WEALTH MANAGEMENT Account?

    Speak to your expert adviser or call our number.
    888-213-4695

    College Savings Plan

    To plan for your child’s college education, you need to make strategic decisions that’ll benefit you. FSL WEALTH MANAGEMENT has two options you can choose from, they are Education Savings Accounts(ESAs) and the 529 plan. These accounts are different from regular custodial or brokerage accounts and come with rewarding tax benefits. Learn more about:
    • The three types of accounts to choose the best fit for your child
    • Tips to help you prepare for your child’s future

    The three types of accounts to choose the best fit for your child

    Custodial Account Education Saving Account 529 plan
    What it means
    A brokerage account opened by a parent or guardian on behalf of a minor to invest funds that can be used for education or any other purpose
    A regular account opened by a parent or guardian on behalf of a minor, to manage funds for educational purposes
    An account dedicated to educational expenses with a tax advantage at the state level.
    Earnings
    The initial $2300 earned in a child’s account is income tax-free. Once the amount exceeds $2300, the subsequent earnings will attract taxes at the parent’s rate. However, the child must be below 19 years and still dependent.
    You pay taxes when you want to withdraw funds
    You pay taxes when you want to withdraw funds
    The amount you can contribute
    You can contribute up to $16,000 in a single year per beneficiary and up to $32,000 for a couple per year for one beneficiary.
    N/A
    You can contribute up to $80,000 in a single year per beneficiary and up to $160,000 for a couple per year for one beneficiary.
    Withdrawals
    No tax benefits whether you’re using it for educational purposes or not.
    You will not be charged income taxes at a federal level when you use the money for educational reasons
    You will not be charged income taxes at a federal level when you use the money for educational reasons
    Contribution limit
    There’s no limit to the amount you can contribute
    You can only contribute $2,000 per year. This can change depending on the gross income limitation
    An average of $450,000. This is a lifetime limit although varied by states
    Penalty for nonqualified withdrawals
    You’ll be charged a 10% tax rate for earnings since they’re regarded as normal income
    You’ll be charged a 10% tax rate for earnings since they’re regarded as normal income
    N/A
    Investment Choices
    The beneficiaries have no control over the account until they’re 18, 21, or 25 depending on the state. Until then a custodian will manage the account
    The investment decisions are made by the parents or guardian
    The allocated portfolio will determine where each pre-defined asset will be chosen from.
    How it affects financial aid
    Financial aid can be significantly impacted
    Since the account is managed by a parent or guardian, the assets belong to them in the meantime. So they decide where the financial aid goes.
    Since the account is managed by a parent or guardian, the assets belong to them in the meantime. So they decide where the financial aid goes.
    Age limit
    The beneficiary must not be above 18 years.
    The account will be funded until the beneficiary turns 18, and must be distributed by the time he turns 30
    There are no age limits for beneficiaries

    Tips to help you prepare for your child’s future

    If you can afford it, start investing today, contribute and contribute consistently. The earlier the better.
    The steps you can take now
    • Study more strategies for success
    • Private, in-state, and out-of-state institutions all have different costs. Ensure you review them
    • Create a budget that allows you to set aside an amount every month for college funds
    • Automatic investing could be a good option, as it helps you with consistency towards achieving your goals.

    Get more details about FSL WEALTH MANAGEMENT Education and Custodial Accounts

    Take that step today with FSL WEALTH MANAGEMENT

    Open an Account

    Call 888-213-4695

    Already have a FSL WEALTH MANAGEMENT Account?

    Speak to your expert adviser or call our number at 888-213-4695

    Paying for College

    A college education is expensive, and you may not be able to afford the fees due to your current income or savings. Don’t worry, financial aid like grants, loans and scholarships might help you out.

    Discover how you can:
  • Find sources that help with college funds
  • Estimate the aid you are qualified for
  • Evaluate the aid you’re qualified for

    • Sources that help with college funds

    The sources listed below will be more effective when combined and will help you make good progress towards your goal of paying for college funds and other goals like retirement savings.

  • Parent(s) and students contributing together can grow the funds quickly
  • A custodial account and a 529 plan are college saving accounts that are designed to benefit you
  • You can apply for scholarships or federal financial aid. We recommend going for a scholarship as you don’t need to pay back the funds. CollegeBoard.com is a good place to start.

    • You could also get loans, grants, and needs-based aid from federal student aid. And you’re allowed to postpone payment until you’re done with college. Even if you don’t have a financial need, you can still access a federal loan, which has a low tax fee.

    Loans and lines of credit

    It is easy to apply for these types of loans, without thinking too much about it.
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