College Savings

PKS has direct agreements with all major state sponsored 529 college savings plans. A 529 college savings plan, typically sponsored by a state, enables clients to invest for college deferred from federal and sometimes state income taxes. Investments can be used to pay for tuition, certain room-and-board expenses, fees, books, supplies and equipment, and other qualified higher-education expenses.

Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. Tax and other benefits are contingent on meeting other requirements and certain withdrawals are subject to federal, state, and local taxes.

Through NFS, PKS offers UTMA/UGMA accounts which allow for qualified savings in the name of a minor. The account will be partially taxed at the minor’s tax rate. All assets are the irrevocable property of the minor, not the custodian, and all assets transferred into an UTMA or UGMA may only be used by the custodian for the benefit of the minor. This type of account can be used to purchase an array of brokerage products from mutual funds, equities, fixed income and ETF’s.