Saving for Education - Impact of the Tax Relief Act of 2001

Did you know that the annual limit for contributions to Education IRA will be to $2,000?

Farmers offers several ways to help you prepare for your children or grandchildren's college education. Talk to your local Farmers Agent today about Universal Life Insurance* products to help you create an education fund that will be there for your loved ones even if you are not.

			The annual limit for contributions to Education IRA has been increased from $500 to $2,000, starting in 2002.
			Contributions are allowable to both an Education IRA and 529 plan for the same beneficiary in the same year.
			Distributions from qualified tuition plans made after December 31, 2001 and used to pay for qualified higher education expenses will no longer be subject to federal income tax.
			Deductibility for student loan interest is simplified and expanded.
			A new "above the line" deduction has been made available for the costs of higher education.

Interested in learning more? Contact your local Farmers agent to find out more about how this new law impacts you.

*Life insurance issued by Farmers New World Life Insurance Company: 3003 77th Ave., S.E., Mercer Island, WA 98040-2890.

Form# FNWL020029

Back to Tax Relief Act of 2001