Ordinarily, one drawback of gifting is that when the gift is completed, the donor loses control over the gift, but the tantalizing appeal of a Section 529 plan
is that the donor can maintain control over the assets and revoke the account.
My preference for saving is an IRC Section 529 plan
An employer might want to offer an employee with young children access to a Section 529 plan
Your client can contribute to both a Coverdell Education Savings Account and a Section 529 plan
in the same year and for the same child.
The report relies on information from a variety of sources, including academic research, an extensive database maintained by the College Savings Network (CSPN) on Section 529 plan
features and investment options, and 66 submissions that were received in response to Treasury's request for information posted in the Federal Registry.
In Announcement 2008-17 (REG-127127-05), March 3, 2008, the IRS stated it plans to provide formal guidance on how to recognize a loss in a section 529 plan
but that in the interim, taxpayers may rely upon the interpretation of Publication 970.
Many plans also have financial service fees associated with them, so it's always wise to consult a financial advisor to determine which Section 529 plan
is right for you.
Keywords: Asset, Allocation, College, Savings, Taxes, Section 529 Plan
In addition, the generation skipping tax is not applicable to transfers under a section 529 plan
To help parents and grandparents meet this mounting challenge, almost every state now has a Section 529 plan
that encourages investing for higher-education expenses by offering significant tax- and estate-planning advantages.
Chapter 8 weighs the various tax-advantaged options now available to save for college such as the Section 529 plan
and education savings account, as well as the subsidies available to reduce the actual cost of college, such as the Hope and Lifetime Learning Credits.
Being predetermined within a Section 529 plan
is a matter entirely separate from allocating between a 529 plan and a fully taxable investment.