• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 4. Estate Planning > Section 529 Plans

Section 529 Plans

Putting away money for your children’s or grandchildren’s college education can be as simple as one, two, three if you use a plan known simply as five, two, nine. It also can provide some interesting estate planning opportunities for you as well.

Section 529 refers to a section of the Internal Revenue Code that first became part of the law in 1997. Under a 529 Plan, family members, such as parents or grandparents, can set up an investment account to be used for a child’s or grandchild’s college education costs. Under the original 1997 law, taxes on the the earnings of the account were deferred and were subject to tax when the student withdrew the funds for college expenses. Since 2002, the earnings are now tax free at withdrawal, and in some states you can even get a tax deduction for contributing to a 529 Plan. In the back of the book is a chart that lists the states that allow income tax deductions for contributions to a 529 Plan.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint