Plan 529

https://www.savingforcollege.com/article/529-plans-not-for-kids-only

8 Common Misconceptions About 529 Plans

To learn about the investment options, fees, and other rules on state 529 plans, go to: www.savingforcollege.com

To learn about private 529 plan by private colleges and universities, go to:

www.privatecollege529.com

For 2018 through 2025, funds in 529 plans can be used for tuition at private or religious primary and secondary schools (grades K-12) up to $10,000 annually. The dollar limit applies per student.

Qualified tuition programs can be used effectively for estate planning purposes. A wealthy grandparent can fund an education savings for a grandchild with little or no gift tax cost. You can make a sizable contributions in one year, treating the contributions as being made equally over 5 years. Now the annual gift tax exclusion is 15,000 dollars in 2019 (30,000 dollars for married persons making joint gifts). That means, both grandparents can contribute up to $150,000 dollars to a state savings plan for their grandchild! There will not be taxable gift in this transfer.

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