While the bulk of the attention regarding recent tax reform has been focused on the major changes to personal and corporate tax rates, the plan also includes some provisions that make 529 savings plans more beneficial.
As a grandparent, there are a number of ways that you can contribute to the post-secondary education of your grandchild(ren), but a 529 plan could be the best option available to you.
Withdrawing funds from a 529 plan may seem simple enough, but once you have entered the “withdrawal phase”, you need a plan of action before you pay that first tuition bill. Knowing the key steps and tax-planning issues to watch out for are essential to maximize the effectiveness of your 529 plan.
Families are working hard to save as much as possible for the ever increasing cost of their children’s college education. It is important to have a plan in place to manage the possibility of leftover funds.
