Education Savings Accounts
Education Savings Accounts has no subcategories
The structure of the services index and definitions of the terms contained herein were orginally published in A Taxonomy of Human Services: A Conceptual Framework with Standardized Terminology and Definitions for the Field by the Information and Refferal Federation of Los Angeles County, Inc., 3035 Tyler Ave, El Monte, CA 91731; Copyright (c) 1983, 1987, 1991. No part of there listing of human service terms and definitions may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electrical, mechanical, photocopying, recording or otherwise without the prior written permission of the Information and Referral Federation of Los Angeles County, Inc.
Organizations that provide opportunities for families to open tax-advantaged bank accounts which encourage savings to cover future education expenses (elementary, secondary and/or college); or which open and "seed" accounts for children of a designated age or grade in anticipation of ongoing contributions. Withdrawals are generally tax-free if used for approved educational expenses. Funds in seeded accounts cannot be withdrawn until an established time, e.g., after the child's high school graduation. Included are Qualified Tuition Programs (QTPs) known informally as "529 plans" operated by a state or educational institution, with tax advantages and potentially other incentives to make it easier to save for college and other post-secondary training for a designated beneficiary (such as a child or grandchild); Cloverdell Education Savings Accounts (ESAs) for designated beneficiaries established by individuals whose modified adjusted gross income is below the established amount; other plans recognized by the IRS; and locally established plans that provide a small monetary contribution but no tax advantages.
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