It is never to soon to start planning — financially, that is — for college. Coverdell
Accounts and 529 Plans are two of the currently popular methods of accumulating college
The term "529" refers to section 529 of the federal tax code in the same way that 401(k), 403(b), and 457
retirement plans do. Just as these retirement plans allow for tax-free savings towards
retirement, a 529 plan allows for tax-free savings toward college tuition.
CollegeAdvantage is Ohio's 529 plan. To learn more about Ohio's direct college
Coverdell Accounts, formerly known as an education I.R.A.s, allow for an annual contribution of up to $2,000,
and earnings on this money are free of taxes.
Here are two informative web sites where you can learn more about these two college savings plans:
Here are some other web sites that can provide information about financing a college education:
Nelnet (formerly Chela)
Ohio Board of Regents
Ohio College Access Network
Student Loan Funding