Although not an exhaustive list, here are several ways to save for the tuition needs of your children or grandchildren.

Calvin College Tuition Gift Certificates
You may purchase tomorrow’s tuition at today’s prices through Calvin’s Tuition Gift Certificate Program. Certificates are issued in increments called tuition units, each of which represents 1/100th of a full year’s tuition. These certificates may be used only at Calvin; however, they may be re-designated to another student if your child or grandchild attends another college. For additional information, please contact the Financial Services Office at finserv@calvin.edu or (616) 526-6127.

Education Unitrust
If you have a highly appreciated asset, such as real estate or stock that you have owned for many years, you can provide a stream of income to your children or grandchildren to provide for their college education through an education unitrust. At the end of the trust term, the trust assets would revert to Calvin and could be used to fund a scholarship to help other deserving students. Some of the benefits of an education unitrust include a current charitable tax deduction, a delay or possibly permanent deferral of capital gains tax, and income taxation to your child or grandchild at a lower tax bracket. For additional information, please contact the Planned Giving Office at plannedgiving@calvin.edu or at (616) 526-6090 or at (800) 968-4363.

Section 529 Plans
Section 529 plans include both college savings plans and prepaid tuition plans. Plans and contributions vary by state. A relative or friend may establish an account to benefit a student attending any college or university. Earnings accumulate tax-free, and withdrawals are tax-free if used for qualified educational expenses, all subject to IRS rules. State tax treatment varies. Michigan’s plan covers not only tuition, but also room and board, books, and mandatory fees. For a helpful comparison of 529 plans by state, visit the following Web site: www.savingforcollege.com

Coverdell Education Savings Account
Contributions up to $2,000, after tax, may be made annually to a Coverdell Educational Savings Account (ESA) for a child. The child is the owner of the account. Earnings accumulate tax-free, and withdrawals are tax-free if used for qualified education expenses, all subject to IRS rules . State tax treatment varies. A Coverdell ESA may be transferred to another child or rolled over into a regular IRA.

Deductible IRA
You may use funds from your IRA (individual retirement account) for family education expenses without paying an early withdrawal penalty. Contributions to your IRA are pre-tax, and earnings are tax-deferred. Contribution and withdrawal limits and tax on withdrawals are all subject to IRS rules.

For an overview of ways to save for college, see www.finaid.org/savings.