Like any goal, the sooner you start saving for a child or grandchild’s education, the easier it is to achieve. But even if tuition bills are closer on the horizon than you care to admit, there are ways to catch-up and help the next generation finance their dreams. Your Janney Financial Advisor can show you how to get started.
Helping to pay for a grandchild’s college education affords you an opportunity to impart your financial values and learning, as well as providing a smart way to transfer wealth without having to pay gift and estate taxes.
So they don’t count as income and reduce aid eligibility, consider delaying distributions from 529 Plan accounts owned by grandparents.
Under the five-year gift rule, you can contribute up to $75,000 ($150,000 per couple) toward each 529 plan without incurring gift taxes.
Payments made directly to a university for a grandchild’s tuition only aren’t considered taxable gifts.
As the owner of a 529 Plan account, you retain control of the assets and can change the account beneficiary if the child decides to forego college.
You don’t need to go it alone. We can help you navigate financial questions and give you greater confidence about the future.
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