By contributing to a 529 plan, you may benefit from tax advantages — without giving up control of plan assets. As an estate planning tool, 529 plans may allow removal of significant assets from your taxable estate. Investment growth in a 529 plan, as well as distributions, is not subject to the new 3.8% net investment income surtax.
529 college savings plans allow parents and relatives to implement advanced gifting strategies. Contributions can be prorated over five years without incurring federal gift tax consequences. With a 529 plan the account owner maintains control of the assets in the account even though contributions are considered completed gifts. Parents and relatives can benefit from advanced
Just a few years’ delay in saving for college can dramatically increase the monthly savings needed to meet education funding goals. Early saving for college can reduce the burden of borrowing and pressure on current income when the child attends college. A “Cost of Waiting” calculator can help you see just how much it could
College savings plans offer an important tool for managing the cost of higher education. Saving in advance could offer a significant cost savings compared to taking loans during college. College Savings Calculators can help you assess your personal situation. Before you know it, that special day will arrive — your child will be off to
The factors that affect needs-based financial aid for college are often misunderstood. The “Expected Family Contribution” is determined predominantly by parental income, not parental assets — such as savings in 529 plans. A separate savings vehicle, not in the name of the child, may be the most advantageous in the financial aid formula. One of