First, 529 plan contributions are generally deductible on state tax returns if you live in a state that has an income tax.

The 529 structure solves for tax efficiency, control over use of the gift and takes advantage of continued long-term compounding. Current gift tax rules allow for each individual to gift up to $ ...

Other contribution and tax considerations for 529 plans. The 529 plan has become a popular way to save for college expenses — ...

Reason No. 2 to use a 529: Gift tax benefits. Taxpayers are allowed to gift a certain dollar amount each calendar year that is free of gift taxes. Normally, that means you can make an $18,000 gift ...

An important part of financial planning for physicians with children can be 529 plans.

account. Other Ways To Gift A Higher Education While a 529 plan is typically a great vehicle for college gifting, it’s not always the best option. There are lots of ways to help loved ones save ...

"I thought that was pretty darn cool." As overall participation rates in 529 college savings plans have been rising, so too are gifts from friends and family. Altogether, total investments in 529 ...

Families should be aware of possible gift tax consequences when it comes to funding a 529 account. In 2021, a single person can give up to $15,000 per person, per beneficiary to a 529, equating to ...

Santa Fe, NM, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Education is a pathway to success—a pathway that often requires a funding strategy from families and students. Proactive savings through a 529 education ...

Directing gifts for your child to their 529 plan is one way other can help. “Friends and extended family can lend a hand as well by contributing direct to a specific 529 plan or by purchasing ...

"A $50,000 gift, for example, would reduce aid eligibility by over $20,000." Grandparents hoping to chip in for a grandchild's college education can open a 529 plan themselves or contribute to a ...

Popular options include 529 plans, Roth IRAs, custodian accounts, trusts and medical and tuition payments. You should also consider the annual gift exclusion limit and financial aid implications.