Dodging 529-Plan Tax Traps, save money for college the right way

Pay attention to timing. There is no IRS ruling yet whether withdrawing money from a 529 account in one year and using it the next is allowed or not.

Make sure the expenses qualify.  Double-check that you allowed to withdraw 529 savings to pay for college bill.

Take any scholarships or tax credits into account. The federal govt offers a number of tax credits worth up to $2500 per student.

Act fast on fixes. You are allowed only one rollover for each 529 account you own within any 12-month period.

Check before you make a big gift.  Assets you contribute to a 529 account no longer count as part of your estate even if you the account owner. Each grandparent can contribute up to $14,000 a year in 529 account for each child without incurring gift taxes or $70,000 in one fell swoop, using up to five years of gifts at once.  Still, people who make five-year gifts have to file a federal gift-tax form to make sure they get the full exemptions.

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Here is the easy way of saving for college tax free , in an index universal life policy.  Call Connie for no elaborate taxes college plan 408-854-1883 motherhealth@gmail.com CA Life Lic 0G60621.

1yr old pension +saving plan up to $3.6M at age 65 with health benefit

1yr old pension +college plan have $61k cash at age 16

1yr old pension +college plan with access to $1.5M when health threats occur

 

Connie Dello Buono 

 

Money coach and wealth strategist for tax-free retirement

 

 

 

1708 Hallmark Lane San Jose CA 95124
PS. Ask me for 6% index annuities and 13- 17% index universal life policies

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connie dello buono

Health educator, author and enterpreneur motherhealth@gmail.com or conniedbuono@gmail.com ; cell 408-854-1883 Helping families in the bay area by providing compassionate and live-in caregivers for homebound bay area seniors. Blogs at www.clubalthea.com Currently writing a self help and self cure ebook to help transform others in their journey to wellness, Healing within, transform inside and out. This is a compilation of topics Connie answered at quora.com and posts in this site.

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