Sullivan & Company - Certified Public Accountants 4709 Montgomery Lane #201 - Bethesda, MD, 20814 Phone: 301-657-8080



Paul Sullivan, CPA

Sullivan & Company


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July 2010 Articles

Click here to review

Feature Articles

- Saving for College with 529 Plans

- Hurricane Season: Safeguard Your Tax Records

- Affordable Care Act Tax Provisions

- Tax Credits for Home Improvements

Tax Tips

- Do You Need to Pay Estimated Taxes?

- Getting Married? Filing Status Considerations

- Coverdell Education Savings Accounts

- Deducting Your Home Office

- Don't Panic! Eight Things to Know If You Receive an IRS Notice

QuickBooks Tips

- Hiring Summer Employees? QuickBooks Can Track Their Time

Financial Planning Tips

- Estate Plan Checkup

- Examine Property Tax Bills

- Budget vs. Actuals

- Investment Review




Saving For College with 529 Plans


As another school year ends, college tuition payments are a year closer. Parents often wonder when they should start saving and how much?


College tuition and fees are costly and on the rise.  But even with 4-year private schools running on average $36,000 per year, the cost is well worth it.  According to the US Census Bureau, individuals with a bachelor's degree earn more than double those with just a high school diploma.


How much to save depends on how much you think your child's education will cost.  The best way is to start saving before they are born.  The sooner you begin, the less money you will have to put away each year.


Quick Example: Suppose you have one child, age six months, and you estimate that you'll need $120,000 (4yrs x $30k) to finance his college education 18 years from now. 


If you start putting away money immediately, you'll need to save $3,500 per year for 18 years (assuming an after-tax return of 7%).


On the other hand, if you put off saving until the child is six years old, you'll have to save almost double that amount every year for twelve years.


Want are your numbers for your child's education?  Use our online College Savings Financial Calculator (pictured below + click here to access).


You can enter your estimate Education Expenses for each child, their ages and all the other variables in yellow.


For more information on the rest of the article on College Savings with 529 Plans, click here.

Or if you want to talk or ask me questions, call me, Paul Sullivan, at 240-316-3531.



As always you can call our offices if you have any questions about these or any other accounting related issues, at 301-657-8080. 


Regards, Paul Sullivan, CPA