Viewing entries tagged
529 Plan

The 5-Year 529 Plan

The 5-Year 529 Plan

Most taxpayers know that they can give gifts of up to $14,000/year to any individual without reporting the gift on a gift tax return.  If married couples elect to split gifts, then the couple can give up to twice that amount ($28,000) to an individual without reporting.  But, there is a little known loophole for making larger gifts without affecting the lifetime gift exclusion.  

Education Planning: UTMA, 529 Plans, and The Roth Exception

Education Planning: UTMA, 529 Plans, and The Roth Exception

I can say that we have stayed away from using UTMA's and don’t really see it as the best available option for funding a child's education. We typically see this strategy with physicians 45 or older as it was the suggested preference of financial planners at one point, but I see the use of it declining and it is now almost non-existent with the younger physician generation. The reason is in the details: