As the costs of higher education continue to rise, people are turning to tax-advantaged 529 savings plans to help fund their children’s education expenses. A 529 savings plan is a state-sponsored investment plan that offers tax-deferred growth and tax-free withdrawals when used for qualified education expenses. In addition, some states offer their residents additional tax … Continued
Congratulations, your son or daughter—or perhaps grandchild—recently got accepted to college, and soon is off to school in the fall. Together, you are probably discussing coursework and prospective majors and figuring out housing arrangements and meal plans. One important, but frequently overlooked, topic is what to do in case your child becomes incapacitated… now that … Continued
To those of us that are parents, many would agree that our greatest asset is our children. We do our best to raise happy, healthy, and kind kids that will hopefully make the world a better place. We teach them how to deal with adversity. We teach them how to overcome rejection. We strive to … Continued
July 28, 2022 No one said being a parent would be easy. In his book The Opposite of Spoiled, The New York Times money columnist Ron Lieber notes that while parents want the best for their children, when it comes to discussing financial issues, things can get tough. Talking to your children about money and … Continued
April 29, 2022 In the fall semester of 2020 (the most recent available data through the Education Data Initiative), roughly 15.9 million undergraduate students were enrolled in American universities or colleges. Though there have been slight declines in enrollment over the past couple of years, millions of students will continue to pursue postsecondary education in … Continued
April 22, 2021 In the current political environment, all eyes are focused on what possible new estate tax changes might become law given the new administration’s campaign proposals. While any such changes will be very important and require careful review and planning, it should not be overlooked that there are other fundamental life events that … Continued
Many kids see money go in and out of their parents’ wallets and, depending on their age, most don’t know how it got there nor how quickly it can disappear. Or as it happens in my home, that brown box with the swoosh of a smile arrives with some regularity on our doorstep and my … Continued
Custodial accounts are the simplest way to give property to minors, easily established at banks and brokerage firms, and do not require the need for an attorney to create a special trust. The gifts are deemed irrevocable, and age limits then apply for when the assets become fully available to the beneficiary child, typically … Continued
529 plans can now be used to fund up to $10,000 of private school tuition per year. 529 plans are funded with after-tax dollars, but then all income and gains are sheltered within the plan over time, and withdrawals are free of both federal and state tax as long as the proceeds are used for … Continued
The “Tax Cuts and Jobs Act of 2017” (TCJA) was signed into law on December 22nd and, while it will take some time to fully absorb its many impactful provisions, some key areas for planning clearly exist in this New Year. Probably the most significant change for many private taxpayers is the substantial expansion of … Continued