Save today for college tuition

A College Education is necessary, but expensive.

If you have not spent any time researching college tuition costs, we can tell you that they are increasing each year.  Hopefully your income is increasing as well, but it is essential to have some type of savings to help the student with costs.  Even with financial aid, it is scary to think about graduating, with a debt of over $100,000, but this is today’s reality.

Saving for college tuition is simple and necessary to create more possibilities for your children and grandchildren.

We offer numerous savings mechanisms for tuition:

We are available to speak with you, in English and Ukrainian.

IRAs offer benefits for Saving for College Tuition

The effective growth rate of a 3.50% tax-deferred or tax-free IRA or annuity, as offered by Providence, can earn up to 5.55%.

The Tax Payers Relief Act of 1997 established Roth IRA as an excellent tax-free investment vehicle. It also made all other IRAs (Traditional, SEP and SIMPLE) accessible to unrestricted penalty free withdrawals for tuition.

• With a traditional IRA, you may be eligible to deduct all or part of your IRA contribution from your taxable income and pay no taxes on the interest earned until you withdraw the funds. Usually, this account is used for retirement, and have penalties associated to early withdrawals. Withdrawals for education are penalty-free, so if you want to pitch in for your grandchild’s tuition bill, you can do so without paying 10%.
• Eligible taxpayers can make nondeductible contributions to a Roth IRA which features tax-free withdrawals.  Penalty-free early withdrawals are also available for tuition and qualified first-time home purchases, just as for the IRA

Depending on the type of IRA, the interest earned may be tax-deferred or tax free. The contributions may even be tax-deductible. 

If you are not sure which account is best for you, consult your tax advisor to determine your opportunities.

IMPORTANT NOTICE: FOR Additional important information (inter alia, Contribution, Adjusted Gross Income and other Limits and Qualifications) Affecting Your IRA, SEP IRA and Roth IRA Savings and Contributions for 2021 & 2022 (Download 2022 IRA – COLA Updates)

ANNUITIES OFFER SUPPLEMENTAL TAX-DEFERRED SAVINGS 

If you do not qualify for an IRA, a Providence Annuity will save on taxes and still earn our high current yield. This plan can also supplement your IRA education and other savings.

Прочитайте про Ануїети, страхові ренти по Українськи.

WHOLE LIFE INSURANCE and YOUTH POLICIES

When your child reaches college age, Whole Life Insurance becomes a convenient vehicle to fund tuition. The policyholder can use the cash value for a relatively low interest rate loan. Depending on the cash value accumulated, your premiums will not change, but the benefit amount will be reduced by the amount of the loan.

Your child’s policy can also be an invaluable resource for college funding as well. An additional bonus of a Providence youth policy, is the availability of our annual scholarship program. This year we awarded six recipients with scholarships. Check out the Permanent Insurance Youth Policies we offer.

You may also be interested in Youth Term Life Insurance to protect your child’s insurability.