WAYS TO SAVE FOR COLLEGE
Families have several options for preparing for future education costs. Review the options below and choose the path that best fits your timeline, goals, and budget.
Arkansas Brighter Future 529
A flexible savings plan sponsored by the State of Arkansas, with tax advantages and investment options for future education costs.
- Tax-free withdrawals for qualified expenses
- Use at eligible colleges, universities, trade schools, and more
- Automatic investing options starting as low as $10/month
Coverdell Education Savings Account
A tax-advantaged account that can help pay for qualified education expenses, including K–12 and college costs.
- Tax-deferred growth
- Tax-free withdrawals for qualified expenses
- May be used for elementary, secondary, and college expenses
U.S. Savings Bonds
Certain EE and I bonds may offer tax benefits when used for qualifying college tuition and fees.
- Potential tax exclusion when used for education
- Income limits may apply
- Backed by the U.S. Treasury
Individual Retirement Accounts
IRAs may be used for qualified postsecondary education costs, though taxes may still apply.
- Penalty exception for qualified higher education expenses
- May apply to children or grandchildren
- Review tax implications before withdrawing
