Northwest Financial LLC

COVERDELL EDUCATION SAVINGS ACCOUNTS

What used to be called the Education IRA is now the Coverdell Education Savings Account. In 2002, the Coverdell Education Savings Account became an attractive college savings vehicle for many people. In fact, even if you like the 529 plan you may still decide to contribute the first $2,000 of savings for each child into a Coverdell account. Contributions to the account are taxed, but earnings used to pay qualified education expenses are not. The entire account must be dispursed before the beneficiaries 30th birthday, and withdrawals after this date or for nonqualified expenses will be subject to income tax and penalty. Like every program, there are advantages and disadvantages; an Northwest Financial LLC financial representative can explain them to you.

Although Coverdell Education Savings Accounts can be a good way for you to save for college, they are just one of a variety of ways to help you ensure that you will have enough money to send your children to college. To get help with your education planning, just set up a no-cost, no-obligation appointment with a Northwest Financial LLC services representative.

Contact Northwest Financial LLC or call us at 703-810-1072 for your appointment to discuss ways to save for college.

Access to securities and insurance products provided by Northwest Financial Group, a registered broker/dealer, member FINRA/SIPC. Northwest Financial Group is a subsidiary of Northwest Financial LLC, a wholly owned subsidiary of Northwest Federal Credit Union. Securities and insurance products are offered through LPL Financial and its affiliates, member FINRA/SIPC. LPL Financial has contracted Northwest Financial Group to refer securities and insurance business to LPL Financial. Northwest Financial LLC and Northwest Federal Credit Union are not registered broker/dealers and are not affiliated with LPL Financial. Not NCUA insured. No credit union guarantee. May lose value.

Loan protection and tax preparation services are not affiliated or endorsed by LPL Financial.

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