Kids & Family

The money can be withdrawn without penalty if the beneficiary dies or becomes disabled. You can change the beneficiary of your 529 plan to another family member. The eligible family members include adopted children, parents, siblings or stepsiblings, stepparents, first cousins, nieces or nephews, aunts or uncles. You can withdraw the funds and not use …View Article

A:  That depends on who is the owner of the 529 account.  The income and assets of the family are used to determine the Expected Family Contribution (EFC) when applying for financial aid. Twenty percent of assets in the student’s name (e.g., custodial accounts) are counted toward the EFC, only 5.6% of assets owned by …View Article

A:  Individuals can take advantage of the annual gift tax exclusion by contributing up to $15,000 ($30,000 for married couples) per beneficiary, per year as of 2018. A special rule applicable only to 529 plans allows an individual to accelerate up to five years’ worth of annual exclusions by contributing up to $75,000 ($150,000 for …View Article

A:  No. Each account has a single owner and a single beneficiary. A husband and wife cannot even be joint owners for their child. One parent is the account owner and a successor owner can be named in case the original owner dies. You need a separate account for each beneficiary. In other words, you …View Article

Over 80 different 529 plans are available since many states offer more than one plan. You can invest in any state’s plan, no matter which state you live in. Each plan has different investment options and fees. Some plans enable the account owner or their financial advisor to pick the mix of mutual funds from …View Article

A:  You do not get a federal tax-deduction for contributing, although some states offer a state income tax deduction. Naturally, you must live in that state and invest in that state’s plan. Earnings in the plan grow tax-deferred and can be withdrawn tax-free (similar to a ROTH IRA) as long as they are used to …View Article

A:  529 plans are investment accounts designed specifically for college savings. There are two major categories of 529 plans: Savings Plans and Prepaid Tuition plans. Prepaid Tuition plans allow you to pay a fixed amount to a specific state institution now for a guarantee that your child’s tuition will be covered at that state institution …View Article

A: Due to the continued increase in college tuition and fact that the average college graduate is entering the workforce with over $30k in student loans, it may seem as though a college education is not worth the cost. However, studies have shown that college is still worth it. Adults with bachelor’s degrees earn an …View Article

A:  It’s hard to make a good case that a child’s death would create a financial hardship, and there are better savings strategies for children. One instance where buying a life insurance policy on a child makes sense is in a situation where the parents are dependent on their child for their livelihood (think Miley …View Article

A: You can start as early as age five with simple concepts like counting coins and letting your child give the money to the cashier. You should give kids an allowance and teach them about saving vs. spending starting around ages 6-8. Also, read: Money Tips: Teach Your Children About Money.