Congratulations! You have four years of tuition, room and board stashed away in your 529 plan and your child hasn’t even graduated from high school yet. Now you can breathe easily, right? Well … maybe, maybe not.
Each state offers its own plan. Much like your 401(k) plan at work, they offer a set list of investments and the assets inside can grow tax free. As of 2020, you can gift up to $15,000 per year per spouse to each child’s account without having to file a gift tax return. Once the account balance reaches $300,000+ no other contributions can be made. State rules vary.
The last years of high school are an exciting, stressful and scary time for students, from academic pressure to social and behavioral issues. They are adults in many ways, but still little kids in other ways. Having never parented a child through this stage before, my wife and I learned a lot in the process.
Full transparency: Before I had kids, I looked at day care graduation photos with a certain level of judgment and cynicism. It seemed silly to me, like participation trophies. I liked the idea of celebrating just one major graduation, which represented the culmination of all a child’s academic achievements over the years. But then I
College savings is a topic near and dear to my heart, as we have a 17 year-old who is currently undergoing the college exploration process. It seems like just yesterday we dropped him off for his first day of kindergarten. He looked so small walking into that big school with his little turtle backpack on,
Tax-advantaged savings for disabled children At Parsec, we strive to provide you with information to better your financial future. There are many tax advantaged accounts that we recommend throughout the planning process, and the ABLE account is one that could be discussed if it benefits your family. Signed into law in 2014, after many years