The 529 plan Is An Excellent Estate Planning And College Planning Tool
A 529 plan allows a parent, grandparent, other family member, friend or any other person to establishment a savings account for the benefit of any other person of any age who plans to attend elementary, secondary school and/or college regardless of the donor’s income.  The federal gift tax exclusion allows an individual to gift up to $15,000 per year ($30,000 per year for a married couple) with no gift tax consequences.  A donor can also give up to 5 years of gifts in one year. However, if the donor dies during the 5 year period, the amount allocated to years after the decedent’s death will be included in the donor’s gross estate.  The earnings in the account accumulate tax free and the withdrawals are federal income tax free as long as they are used at an eligible educational institute for qualified educational expenses.
These expenses include tuition, books, required school supplies, room and board and computers and related expenses such as internet and educational software. Â The account can be used for thousands of educational institutions across the country-anywhere federal financial aid is accepted. Â The account is similar to … Read More... “Ohio’s 529 Educational Savings Plan – A Primer and Latest Updates”