Cathy Robinson, CPA
Senior Manager
How about starting or
contributing to a 529 College Savings Plan account?
You can set up a Plan operated
by a state or state agency and name anyone as a beneficiary. The contributions cannot exceed the amount
necessary to provide for the qualified education expenses. Remember, any gifts in excess of $14,000 will
be taxable. Since you will be the
purchaser, you will control the funds until they are withdrawn for educational
expenses.
The earnings from a 529 Plan
are not subject to Federal taxes and may not be subject to state tax if the
money is used for educational expenses for college. For the state of Ohio, $2,000 per beneficiary
can be deducted on the individual income tax return and any excess can be
carried forward to deduct in future years.
So again, I ask, need a gift
idea? Getting started on affording a college education is something you or your
beneficiary will not forget.
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