Personal Education Funding
As college costs continue to rise faster than inflation, saving for educational expenses is increasingly important. Frost can help you reach your savings goals through a variety of products and our extensive expertise. We’d be happy to help you create a plan that is achievable and will meet your goals.
Coverdell Accounts
Can be used to fund any education expense — not just college.
- contributions are limited to $2,000 annually
- must be used by the time the beneficiary is 30 years old
- no annual restrictions on changing investment allocation
529 Plans
An educational savings plan administered at the state level.
- must be used for college expenses, including room & board
- no annual contribution limit*
- no beneficiary age restrictions
Custodial Accounts (UGMA/UTMA)
Similar to a Trust, a tax-preferred way to transfer assets to a child.
- assets are owned by the child, not the custodian
- assets are taxed at the child’s rate (over certain thresholds, it's taxable at parents’ rate)
- does not have to be used for educational purposes