Did you know you can accelerate five years’ worth of college savings into a single
$75,000 contribution ($150,000 per couple) without triggering gift taxes?*

Things to consider

Investment vehicles like 529 Plans are a great way for parents and grandparents to help offset some of the financial burden of paying for college. But decisions around who owns the account and how funds are distributed can significantly impact a student’s eligibility for aid.

A pie chart with three sections

Plan in thirds

On average, about ⅓ of a student’s college costs are funded by scholarships and aid, another ⅓ comes from parent income and savings, and the final ⅓ will be in student loans.

A checklist and a pen

Convert old UGMA/UTMA accounts

Not only is the process of converting to a 529 Plan relatively easy, it may improve your child’s eligibility for financial aid.

A clock and a calendar

Time your 529 Plan distributions

So they don’t count as income and reduce aid eligibility, consider delaying distributions from 529 Plan accounts owned by grandparents.

A hot air balloon

Think retirement first

Be careful not to focus so much on education saving that you end up derailing your own retirement plan.

What to ask your Janney Financial Advisor

  • What options do I have to save/invest for my child or grandchild’s education?
  • How do 529 Plans work and how are the savings taxed?
  • Will money that I save in a 529 Plan account impact my child or grandchild’s eligibility for financial aid?
  • Given my current financial situation, how should I allocate monthly savings between my retirement accounts and my child’s 529 Plan?

Talk with a Janney Financial Advisor

You don’t need to go it alone. We can help you navigate financial questions and give you greater confidence about the future.

Find a Financial Advisor 

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