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 Save for college

Saving money for college is always a good thing, and every penny helps. Even if you just save enough money to pay for books, you're doing great.

Most people aren’t able to save enough money to cover all college costs. That's why there's financial aid. So don't let the big numbers make you nervous – you'll be able to pay for college one way or another. But the more that comes from savings, the better off you'll be. If you start early enough, there are many options available to help families save money, tax-free, to help pay for college.

For example, under some conditions, parents can withdraw money from a retirement account without paying taxes or an early withdrawal penalty. Additionally, Coverdell Education Savings Accounts and 529 plans allow parents to deposit money into special savings accounts which are set aside to pay for future education expenses. Funds accumulate tax-free, and no taxes are due upon withdrawal as long as you use the money to help pay for college.

For more information about North Dakota's College Save 529 Savings Plan, visit collegesave4u.com.

Check out these other resources to help you get started:

  • SavingForCollege.com. This Web site provides descriptions and access to college savings plans, including many with tax benefits, available to you and your family. Clear descriptions of what savings options are available, including 529 college savings plans, make this a great place to start.
  • College Savings Plans Network. The College Savings Plans Network is a national non-profit association dedicated to making college more accessible and affordable for families. It provides detailed information about 529 college savings plans and allows you to compare plans from around the country.
  • Coverdell Education Savings Plans. Coverdell accounts are trusts created exclusively for the purpose of paying the qualified education expenses of the designated beneficiary of the trust. They are exempt from federal taxation.

You may also be eligible for education tax credits. Consult the IRS publication "Tax Benefits for Education" for more information.