EDUCATION SAVINGS PLANS

YOU WANT TO GIVE THEM THE BEST EDUCATION MONEY CAN BUY. SO DO WE.

YOU KNOW WHAT IT'S LIKE TO WORK 40 HOURS A WEEK WHILE YOU'RE IN COLLEGE.
MAKE SURE THEY NEVER DO.

Today the value of a college education is higher than ever. Graduates from professional, trade and business schools, junior colleges and four-year universities are in high demand, and as a result they're earning exceptional salaries. In fact, according to the College Board, people who spend at least two years in college will earn over $250,000 more over their lifetimes than those who have only a high school degree.

All that earning potential, though, is coming at a rapidly increasing price. Over the last decade, tuition and fees at public four-year colleges have increased at a rate nearly three times that of the median family income. As a result, the percentage of family income required to pay the cost of higher education has increased dramatically. By investing in your children's education, you'll help them avoid one of the most frustrating things that students face today — debt.

PREPARATION STARTS NOW.
Starting early is the key to any successful savings plan. Don't know how to get started? We can help. CommunityAmerica has three great ways for you to invest.

COLLEGE SAVINGS 529 PLANS

Earnings in your 529 plan can grow tax-free.

Withdrawals for qualified higher education expenses, such as room and board, tuition, books and required supplies are free from federal taxes.

You can create an account for anyone you want - your child, grandchild, nephew, friend, or even yourself.

Contributions can vary depending on savings goals.

COVERDELL EDUCATION SAVINGS ACCOUNTS (ESA)

Can help pay for qualified elementary, secondary and higher education expenses.

One Coverdell ESA can be opened per beneficiary.

Non-deductible contributions of up to $2,000 per year can be made at any time
by any person.**

Several mutual fund investment choices are available.

Withdrawals for qualified higher education expenses are non-taxable.

CUSTODIAL ACCOUNTS [Uniformed Gifts to Minors Act (UGMA)/Uniform Transfers to Minors Act (UTMA)]

Non-deductible contributions of up to $12,000 can be made annually.

Withdrawals may not be made by the recipient until he or she reaches the age of majority.

Any money placed in the UGMA/UTMA may not be returned to the donor once
it is deposited.

Once the recipient reaches the age of majority, he or she is entitled to the account.

NO FINANCIAL MUMBO JUMBO HERE. WE'LL MAKE IT SIMPLE, SO YOU CAN MAKE SENSE
OF IT ALL.
From tax exemptions to payment plans, no two saving plans are exactly the same. Coverdell ESA, College Savings 529 Plans and Custodial Accounts each have their own benefits, rules and regulations.

To make sense of all your options, come see your CFS* Financial Advisor at CommunityAmerica Credit Union. All our advisors are dedicated career professionals registered through CUSO Financial Services, L.P. (CFS), and are committed to offering sound, objective advice and finding the best savings plan for you.

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. CommunityAmerica Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.
**For specific tax advice, please consult a qualified tax professional.