College Savings Plan

COLLEGE SAVINGS PLAN

Account 7702(b) can be a secured and reliable college saving plan for your kids to secure their loan free education and financial future. It has numerous benefits compare to Account 529 plans or Coverdell Education Savings Accounts

These are some of the potential benefits of Account 7702(b) for your kid's college saving plan:

• Guaranteed Growth: 7702(b) account offer a guaranteed minimum interest rate on the cash value component. This can provide stability and predictability in the growth of college savings compare to similar account, ensuring that the cash value will continue to accumulate even in unfavorable market conditions.
• No Contribution Limits: Unlike some other college savings vehicles, such as 529 plans, there are no contribution limits on 7702(b) account. Policyholders can contribute as much as they'd like to the accounts.
• No Income Restrictions: Unlike some other college savings vehicles, such as Roth IRAs or Coverdell ESAs, there are no income restrictions for contributing to a 7702(b) account. This makes it a viable option for higher-income families who may be ineligible for certain tax-advantaged account.
• No Penalties for Non-Qualified Withdrawals: While qualified withdrawals from other college savings accounts are typically tax-free and penalty-free when used for qualified education expenses, non-qualified withdrawals are subject to income tax and penalties. With a 7702(b) policy, withdrawals and loans can be taken at any time for any purpose without incurring penalties.
• No Age Restrictions: Unlike some other college savings accounts, which may have age restrictions on contributions or withdrawals, there are typically no age restrictions associated with 7702(b) policies. This flexibility allows families to continue saving for college expenses even if the beneficiary is older or closer to college age.