College Savings Reminders
With the school year ending, now is a great time to review your child's college fund. If you need to make a contribution or set one up, don't wait until December, you can do it today.
529 CONTRIBUTION LIMITS
The federal gift tax exclusion this year is $14,000, which means each parent or grandparent (or anyone else, really) can contribute up to $14,000 for each child. If you want to make an even larger contribution, speak to your tax advisor about making an accelerated gift that uses 5 years of exclusions today.
SETTING UP A 529 PLAN
For most families, our recommended college savings plan is The Vanguard 529 Plan. If, like New York, your state offers tax benefits for using your in-state plan, you should evaluate that plan as well.
Here are our 529 plan recommendations for the most common states among our clients.
If your state is not listed, email me and I will let you know which plan I would use.