INVESTMENTS » Education Planning

Learning keeps us young. Whether you are thinking of first-time college students, graduate school, specialty course or certifications, the cost of education continues to rise. Keep in mind planning for school isn't just for families anymore. With the increase in the non-traditional student enrollment funding a higher education may be a challenge. What are your needs?

• Help with FAFSA
• Information on 529 Plans
• College Planning Services

At Northeast you’ll find help in sorting through all the education savings options that are best for you. Find out about 529 plans, education savings accounts, UGMA/UTMA accounts, and more.

529 Plans*
529 Savings Plans are designed to help you get unsurpassed income tax breaks. Your investment grows tax-deferred, and distributions to pay for the beneficiary's college costs come out federally tax-free. Find out if 529 Plans are for you:

What are you looking to accomplish?

• Save for higher education (college, university, grad school and specialty schools)?
• Withdraw funds that are free from federal income tax when used for qualified higher education expenses
• Reduce impact on FAFSA process and financial aid packages awarded
• Flexibility to change beneficiary to another family member at any time
• Pursue estate and gift tax advantages

Many states offer a qualified 529 Plan which are available to residents of any state. Click here to learn more about Maine’s Next Gen Program or contact us to explore all your options and what state’s program might be best for you.

*The fees, expenses and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. There is no guarantee a college-funding goal will be met. Earnings must be used to pay for qualified higher education expenses to be federally tax-free. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10% penalty. By investing in a Plan outside your State of residence, you may lose any State tax benefits. 529 plans are subject to enrollment, maintenance and administration/management fees and expenses.

Coverdell Education Savings Account (CESA)
A CESA is non-deductible account which features tax-free distributions providing that the funds are used for educational purposes. And, anyone can contribute to a CESA. With a Northeast education savings account, you can invest for any level of a child’s education—elementary school, high school, college, or beyond. And you can start investing for that child from birth. Although contributions aren't tax-deductible, your earnings grow tax-free and withdrawals are free from federal income taxes when used for qualified education expenses.

An Education Savings Account may be the solution to your education needs if you:

• Are looking for a tax-deferred way to save and pay for your child’s primary, secondary, or postsecondary education.
• Can contribute up to $2,000 a year.
• Want to minimize the impact on your child’s chances to receive federal financial aid.
• Want the flexibility to move existing ESA funds to an ESA or 529 college savings plan of an eligible family member.