Expiring tax laws pressure college savings, but not 529 plans

Expiring tax laws pressure college savings, but not 529 plans

While several tax provisions set to expire this year are putting pressure on college savings, there are no legislative changes currently proposed that would impact 529 savings plans. If Congress does not act, the contribution limits for Coverdell education saving accounts will be reduced after December 31, 2012. The current maximum contribution is $2,000 per

Should parents consider converting existing custodial accounts to a 529?

Should parents consider converting existing custodial accounts to a 529?

Before 529 programs became prevalent as an attractive vehicle for funding college education, many families utilized traditional custodial accounts (UTMA or UGMA). A primary benefit of these accounts is that, up to certain limits, any income generated from these accounts is not taxed or only taxed at the child’s tax rate instead of the parent’s

Potential expansion for 529 programs?

Potential expansion for 529 programs?

If some of your clients are not among the 10 million 529 plan account holders nationally, it may be a good time to talk to them about changes to the program proposed in Washington, D.C., that could make these plans even more attractive. Clients who are already saving with a 529 plan will also be

Build your 529 business by targeting local non-profit organizations

Build your 529 business by targeting local non-profit organizations

Each year, churches, schools, hospitals, and civic groups award scholarships to local students. Helping these organizations establish a 529 account as the funding vehicle can be a great way to build business relationships in your community. Here are some reasons why this can be a better alternative for local non-profit organizations, which will typically hold

College savings tax credits extended

College savings tax credits extended

Several tax credits for investors saving for college were extended for two years in the passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The contribution limit for the Coverdell Education Savings Account program, which was scheduled to revert to $500, was maintained at $2,000 and extended through 2012. Depending

Network with local business and civic leaders through 529 scholarships

Network with local business and civic leaders through 529 scholarships

529 scholarship accounts are a great way to generate business and also create future referral and networking opportunities. Charitable organizations that offer scholarships usually have a dedicated staff member for administrating finances, or may outsource fund management to third-party administrators. The additional costs associated with recordkeeping and program administration may mean that the organization can