Accounts for Minors

Given the rising costs of a college education, it's to your advantage to start a higher education funding plan now. A 529 College Savings Plan is a tax-advantaged way of saving for a higher education. The student uses the 529 account for qualified education expenses, such as tuition and room and board. The contributor (or account owner) has complete control over the account and can contribute no matter his/her income level. The account owner selects from a variety of investment options with varying rates of return.

When you're ready to start saving for your child's future, a custodial account may be the way to go. This type of account allows parents or other interested persons to make monetary gifts to minors. The custodial account requires that an adult over age 18 be named as a “custodian” of the account.

• Only one minor and only one custodian are named on the account
  
• Only the custodian can withdraw from the account, make deposits or close the account
  
• Once the child reaches 18 (or age 21 if so specified when the account is opened), the custodian can turn over full access to the account funds to the child
• As with other investments, there are generally fees and expenses associated with participation in a Section 529 savings plan. In addition, there are no guarantees regarding the performance of the underlying investments in Section 529 plans. The tax implications of a Section 529 savings plan should be discussed with your legal and/or tax advisors because they can vary significantly from state to state. Also note that most states offer their own Section 529 plans, which may provide advantages and benefits exclusively for their residents and taxpayers. More information about municipal fund securities is available in the issuer's statement which should be read carefully prior to investing.

Investment products and services offered through CUSO Financial Services, L.P. (CFS), an independent broker/dealer and SEC Registered Investment Advisor, are not NCUA/NCUSIF insured, are not Credit Union guaranteed, and may lose value. Investment Representatives are employed by and registered through CFS. (Member FINRA/SiPC and SEC Registered Investment Advisor)

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