The Greatest Gift You Can Give A Child?
A Future Filled With Opportunity.

For many parents, that opportunity is a college education. Echelon has multiple strategies to help your family save for your child’s education. Regardless of which financial vehicle(s) you decide makes sense for you, the most important variable is time.

Options for Funding College

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as ‘qualified tuition plans,’ are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.

Money that’s in an account owned by the parents or child will be taken into consideration by financial aid formulas. Money that grandparents or other family members put away in their own accounts are not considered an asset. Therefore, a 529 owned by someone other than a parent does not affect financial aid.


You can also consider leveraging Roth IRA assets as contributions can be withdrawn tax-free at any time. If the Roth IRA has been in effect for 5 years and you’re over the age of 59.5 contributions and growth can be withdrawn tax and penalty free.

Another strategy involves borrowing from the cash value of your life insurance policy because it is not reportable.

Set up a meeting to explore the many ways you can save for college >

Investors should carefully consider investment objectives, risks, charges, and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and 529 Product Program Description, which can be obtained from a financial professional and should be read carefully before investing. Depending on your state of residence, there may be an in-state plan that offers tax and other benefits which may include financial aid, scholarship funds, and protection from creditors. Before investing in any state’s 529 plan, investors should consult a tax advisor. If withdrawals from 529 plans are used for purposes other than qualified education, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax.