Overview+

Why save for college?

With the ever-rising costs of a college education, saving for your child’s tertiary education is fast becoming a fact of life. Thankfully, there are a number of investment vehicles to help you offset some of those expenses – but with the array of choices, choosing the right one can be an education in itself. Knowing the options before you decide where to invest your money can help you make the most of your child’s college years. 

A Savings Snapshot

College savings plans are an increasingly popular way to invest in your child’s education. 529 Plans are state-sponsored and offer tax- deferred earnings and income tax-free withdrawals for a wide variety of qualified education expenses. A Coverdell Education Savings Account (ESA) offers similar benefits to a 529 Plan but has different income and contribution limits. Other ways to save include an UGMA/UTMA account, that can be used for the purpose of saving for college, among other things. UGMA/UTMA have no contribution limits and allow you to put away a capped amount of tax-reduced funds for your child, but gives them full control of the money once they come of age. You could also invest the money in a Trust for the Benefit of a Student – there are no contribution limits and fewer restrictions, but no tax advantages either.  

Why Voya?

Voya Investment Management helps over 140,000 people in the administration and investment management of their college savings, and the states of Wisconsin and Iowa rely on Voya to actively manage the investments in their state-sponsored 529 Plans1. This gives us a deep-rooted expertise when it comes to saving for college – expertise that you can put to work for you. Take a look at the resources in this section, and then call one of our registered financial advisors. They’ll be happy to help you plan for your child’s education. 

Types of College Savings +

Types of College Savings

Learn about your options here, and figure out which one best fits you. 

Set aside money for your children until they reach adulthood with the Uniform Gift to Minors Act (UGMA) and the Uniform Transfer to Minors Act (UTMA). 

Put money in a Coverdell ESA now, and pay qualified educational-related expenses later, federal income tax-free. 

For college savings, 529 savings plans give you tax advantages, flexibility and allow for substantial contribution amounts.

Get Started +

Get Started

Use our tools and knowledge to get your college savings on the right track. 

Saving for college?

We can help you get started.
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Securities offered through Voya Financial Advisors, Inc., member SIPC.

This material is provided for general and educational purposes only; it is not intended to provide legal, tax or investment advice. All investments are subject to risk. We recommend that you consult an independent legal or financial advisor for specific advice about your individual situation.

The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties.

Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

 

1Tomorrow's Scholar is Wisconsin's state-sponsored college savings plan administered by the College Savings Program Board and the State of Wisconsin.

Voya Investment Management (Voya IM) provides investment management and administrative services for the Tomorrow's Scholar plan. Shares in the program are distributed by Voya Investment Management. Investments in Tomorrow’s Scholar 529 Plan are subject to certain charges, which will reduce the value of your Account as they are incurred. Please see the Program Description for details of charges or fees that apply to the specific Tomorrow Scholar savings plan.

The IAdvisor 529 Plan is offered by the Iowa Educational Savings Plan Trust, a trust organized under Iowa law and administered by the Iowa State Treasurer’s Office.

The Treasurer of the State of Iowa is responsible for overseeing the administration of the IAdvisor 529 Plan. Voya Investment Management (Voya IM) provides investment management and administrative services for the IAdvisor 529 Plan. Shares in the program are distributed by Voya Investments Distributor, LLC, Member FINRA/SIPC. 

The Options in the IAdvisor 529 Plan are not mutual funds, although they invest in mutual funds. An investment in the IAdvisor 529 Plan is an investment in municipal securities and the value of the Options will vary depending on the value of the underlying funds in which the Options invest. Investment returns are not guaranteed and you could lose money by investing in the IAdvisor 529 Plan.

These securities are not registered with the U.S. Securities and Exchange Commission (“SEC”) or any state, nor is the IAdvisor 529 Plan or any of the IAdvisor 529 Plan Options registered as an investment company with the SEC or any state.

An investor's or a designated beneficiary's home state may offer state tax or other benefits that are only available for investments in that state's qualified tuition program. Please consider this before investing.

Earnings component of non-qualified withdrawals may be subject to federal and state taxes and the additional federal 10% tax.

Voya Investment Management is not an underwriter for any underlying municipal securities.

Investments in Tomorrow’s Scholar 529 Plan & Iadvisor 529 Plan are subject to investment risks, including the loss of the principal amount invested, and may not be appropriate for all investors.

An investor should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. More information about municipal fund securities is available in the issuer's Program Description. You may obtain a Program Description by clicking here or calling 866-677-6933. The Program Description should be read carefully before investing.