529 Prepaid Plans
These plans allow you to purchase a certain percentage of tuition over time that is guaranteed to be equivalent to the same percentage of tuition in the future. Raymond James does not offer 529 prepaid plans. However, we can assist you in determining if a 529 prepaid plan is available in your state.
Benefits
With tuition rates rising, these plans may be appropriate for some families.
States may allow contribution deductions from state income taxes.
Value of contract is free from federal taxes if used for qualified higher education expenses.
Locks in tuition at a known rate.
Funds are not subject to market volatility.
Considerations
Consider these plans carefully since there are limitations.
Earnings are taxed and typically penalties will apply if the funds are not used for higher education.
Your child may have limited school choices.
Refunds may be limited to original contribution only, less fees.
