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Smart Saving for College.

If you have kids, no matter the age, you’ve probably at one point at least thought about how to pay for college someday. If you don’t already have a plan in place, or if you have a plan, but you’d like additional suggestions, we have a couple ideas to help you get started. 

529 Plan

529 Plans are a great way to save for your child’s future education. A 529 plan is operated by a state or educational institution and is designed to help families put aside money for college costs. As long as the plan meets a few specific requirements, there can be special tax benefits for the participant as well. Investments grow tax-deferred and distributions to pay for education costs come out federally tax-free.* However, earnings on non-qualified withdrawals may be subject to certain penalties. 

If you are investing for college on your own, Indiana offers the College Choice 529 plan. There is a range of investment options available as well as online account access. Plus, with this plan, Indiana taxpayers are eligible for a state income tax credit of 20% of contributions to their CollegeChoice 529 account, up to a $1,000 credit per year.** If you would like more information or would like to enroll, click here

FORUM Sprout Account 

To supplement your college savings, a FORUM Credit Union Sprout Account is a great option. This account can be opened any time between birth and age 18. There is no minimum deposit required to open the account and contributions can be made by anyone. Plus, the account earns a competitive dividend rate and FORUM matches 10% of deposited funds per calendar year!*** In addition, if your child chooses a different opportunity in lieu of college, there is no penalty if the money is not used on education costs. For more information or to open an account now, click here


No matter what age your child is, it’s never too late to start saving for their future! 

*The above is not intended to be tax advice, was not written by a tax professional and is informational only. Please consult a tax advisor for your specific situation. 
***Maximum match $100 per calendar year. Match based on four tier levels

Posted: 4/4/2014 with 1 comments

Categories: College, Education, Finances, Kids and Money, Saving

Paula Lanning
We started a Sprout account for each of our 4 grandchildren 3 years ago. Every birthday and Christmas, instead of buying toys, we deposit the amount of money we would have spent on presents into the Sprout accounts. As the kids have gotten older, they now deposit 10% of their allowance each month into their Sprout account. They fill out their own deposit slip and conduct the transaction with the Forum associate by themselves. They are learning how to save and they have learned about doing business with a financial institution. After we started the accounts, now other relatives are doing the same thing. Each of the accounts now have at least $1,000 and up to over $3,000. Forum offers the best ways to make a difference in the lives of our young people.
6/16/2014 1:53:24 PM

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