Tag: 529 plans

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Your Child’s Future Just Got a $1,000 Boost: See Which Companies Are Matching Trump Account Funds!

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Massive Momentum: Companies Pour Billions into Trump Accounts – Will it Reshape American Savings?

the staff of the Ridgewood blog

Ridgewood NJ, The landscape of American family savings is undergoing a significant shift with the introduction of “Trump accounts,” a new initiative designed to empower children with a financial head start. These IRA-like savings accounts for children are not just gaining traction, but they’re attracting substantial support from a diverse array of companies and philanthropists, pledging billions in matching funds. The big question on everyone’s mind: Will this influx of matching money truly spark a new era of American savings for the next generation?

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Big Changes to College Savings Plans

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by James D Brown CPA

Ridgewood NJ, Tax reform added some new taxpayer-advantageous changes to college savings plans. These plans are also known as qualified tuition programs (QTPs) or Sec. 529 plans, named after the part of the Internal Revenue Code that established them.

Background: Sec. 529 plans allow taxpayers to put away larger amounts of money than other tax-advantaged education savings plans do, limited only by the contributor’s gift tax concerns and the contribution limits of the intended plan. There are no limits on the number of contributors, and there are no income or age limitations. The maximum amount that can be contributed per beneficiary (the intended student) is based on the projected cost of college education and will vary between the states’ plans. Some states base their maximum on the projected costs of an in-state four-year education, but others use the cost of the most expensive schools in the U.S., including graduate studies. Most have limits in excess of $200,000, with some topping $370,000. Generally, additional contributions cannot be made once an account reaches the state’s maximum level, but that doesn’t prevent the account from continuing to grow.

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