Cade Financial Services assists clients in setting up and managing various education funding plans, with a strong emphasis on 529 plans. While the specific investment offerings may vary, we can help our clients choose from several common tax-advantaged account types based on their specific goals. The types of education funding plans we can help set up include:
529 College Savings Plans
This is the most common type of education savings vehicle that we would likely recommend.
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Tax advantages: Contributions grow on a tax-deferred basis, and withdrawals are tax-free when used for qualified education expenses, including tuition, fees, room, and board.
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Versatile use: In addition to college, 529 plans can be used for K–12 tuition (up to $10,000 per year), student loan repayments, and registered apprenticeship programs.
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Wisconsin plans: As a Wisconsin firm, Cade Financial Services would be familiar with the state-sponsored Edvest 529 and Tomorrow's Scholar plans.​​
529 Plan State tax laws and treatment may vary. Earnings on non-qualified distributions may be subject to income tax and a 10% federal penalty tax. Please consult your tax adviser for more information.
Custodial Accounts (UGMA/UTMA)
These accounts hold and manage assets for a minor until they reach the age of majority.
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Control over funds: Unlike 529s and ESAs, custodial accounts can be used for purposes other than education as long as it benefits the child.
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Financial aid impact: The assets in a custodial account are owned by the child, which can have a more significant impact on eligibility for financial aid compared to 529 plans. ​​​
