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LKJ Financial can work with you to determine the most appropriate form of college savings strategy for your child or grandchildren.

Options may include 529 College Savings Plans, Coverdell Plans or Uniform Trust for Minors Accounts (UTMA) among other options. Additional information about 529 College Savings Plans may be found below.

Additional 529 Plan Information

Benefits & contributions One advantage of a Section 529 plan is flexibility – large dollar amounts can be contributed to these plans.Yearly contribution:In 2015, an individual can gift a child up to $14,000 with no gift tax consequences. So, two parents could gift $26,000 (combined), a grandparent could gift another $14,000, and so on.

Lump sum contribution: Individuals can gift a child 5 years contributions at one time. So, in 2015, for example, an individual could give $70,000 to a child's 529 plan with no gift tax consequences.

What if my child does not go to college? Beneficiaries can be changed to either another sibling or family member. If no children pursue higher education, a parent can use the money for his/her own continuing education, or that of a family member.Section 529 funds can be used for an accredited secondary school, college or university (in or out of state), private or public and at some foreign schools.

 

 

Taxation

Contributions to a Section 529 plan are made with after-tax dollars. Funds grows tax-deferred, and are not taxed upon withdrawal if used for IRS-designated education expenses.

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