Saving early allows your investments more time to grow, potentially maximizing the funds you’ll have for higher education expenses. If you need, start small and increase your savings contribution when you can. For example, when children are still young, contributions to a 529 plan account can ...
“There are a number of strategies for grandparents to help, but you have to consider how these strategies might impact the whole family: the grandparents, their adult children, and the grandchildren,” says Mike Rusinak, vice president of Fidelity's Financial Solutions group. Once everyone ...
” notes Geisler. “Gifting excess monies to a grandchild in college is a great option for them.” Depending on how the funds are gifted, there may be tax consequences for gifts exceeding $18,000 annually, unless funds are paid directly to the college or university...
Grandparents and grandparents-to-be are thinking ahead to college and education funds for their grandchildren.
Many grandparents see a dual benefit in advancing their grandchildren's education and reducing estate tax exposure. Control and accessibility. You may want to retain control of your funds and keep them easily accessible to you in case of unexpected expenses. Ease of management. You probably want ...
For example, a $10,000 529 plan distribution to help pay for college could reduce your grandchild’s aid eligibility by $5,000 under the previous rules. This is why the rules are changing so dramatically. Now, grandparents can open a 529 plan for their grandchildren and help them pay for...
His thinking: the 529 plan is an efficient vehicle to pass money to his child who can use the funds to fund college costs for his grandchildren. While generous and forward-thinking, this approach does not work for me. First off, as mentioned in prior posts, 529 plans carry fees that ...
a child’s higher education can be a challenge. Fortunately, there are sound strategies you can use to pay college expenses for your children or grandchildren while keeping an eye on your overall financial goals. In addition, you may benefit from noticeable tax advantages by saving for college....
There are plenty of options if you have money left over from a 529 plan. You can save the money for graduate school or transfer the remaining funds to another child. In addition, you could keep the money growing tax free for potential grandchildren. Or pay the 10% penalty and taxes on ...
Q: We have saved money for our grandchildren’s college expenses with 529 plans, and now the first is set to begin. What advice do you have as we begin to make distributions from these accounts? Is Federal Student Aid Among the Best or Worst Government Programs?