wanaberetiree
Full time employment: Posting here.
- Joined
- Apr 20, 2010
- Messages
- 718
Congratulations!
Unless you don't mind filing the 709 gift form, consider having spouse sign check for half the amount so you each don't exceed the 14K limit/annually. (not sure of the effect on state subsidy if contribution is from 2 folks going to same 529)
You can also front load the funding if you file the 709
Grandparents Faqs on 529s - College Savings for Grandchildren
Congrats !! I sense a relocation is in your near future !! My 2 grandchildren live 2 miles up the road !! Just got off the phone with my 4 yr old grandson. I try daily to be half the man he thinks I am !!
Thanks for the info. I hadn't even considered gift tax implications.
Edit: if the funds are electronically transferred from a trust account with DW and I both being trustees, would the forms still have to be filed?
Congratulations Dash Man - what an exciting addition to your life.
My dad started 529's with $10k for both my sons. It was a *very* appreciated gift.
Some ins/outs of 529's in no particular order.
- 529's are owned by the parent or grandparent, not the benficiary child. So when my dad started them he owned them. When he passed away - ownership passed to me. The kids are listed as the beneficiary.
- 529's are kind of like Roth IRAs. Post tax money funds them, but the growth is tax free if the funds are used for qualified expenses. If you need to withdraw money for non-qualified expenses - only the growth is taxable.
- Some states let the contributions be tax free (state tax). If so - this would be a reason to stay with your state plan.
- Parents and Grandparents can set up different plans. This might be advantageous if they are both funding them and both in states where contributions are tax free.
- I live in a state that has no tax advantages for the state plan - and the state plan isn't that great. So our 529 is based in Nevada using Vanguard funds. They've recently improved the interface over what it was.
- With the Vanguard plan you are limited to reallocations 4 times a year... so I use my contributions to rebalance if needed.
You need to look at fees/ERs in the 529's... they're not all alike.
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- With the Vanguard plan you are limited to reallocations 4 times a year... .............................
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Can't wait see him in person next Friday! All are doing well.
pssst.............want to get a leg up on the other 3 grandparents? Willing to resort to some mild subterfuge? A neighbor friend got me something similar to this https://www.amazon.com/Record-Your-...489804769&sr=8-11&keywords=talking+pink+bunny
(or perhaps the same thing). You record a loving message and then leave it w/ the grandkid to squeeze every night before bedtime so you are in effect there 24 hrs a time.........or at least your voice is. You might even be responsible for the first words spoken .........the parents thought our granddaughter was trying to say "Ma...ma" when she was actually imitating
the pink bunny.......as in "Can't wait to see you again and give you a great big
hug........mmmaaa" . At least that's my interpretation.
Yes we are well into it. 5 GCs and a big fund for them all. I would not wait because you can easily add the new ones once they have their social security number. Our kids got married early so they now have two at U, each appreciating the $10k per year for four years! The third one has dreams of Harvard with a scholarship so we will see!Would be interested in hearing any comments/suggestions for those who have done something similar. We both feel that provision of a post secondary and/or post graduate opportunity that is free from financial stress is one of the best gifts that we can leave behind. It would also serve as a gift to our children.
Congratulations. Words to think about - if you thought your kids grew up fast, wait until you see how quick your grand children grow up. It's rewarding but scary. Time does seem to go faster as I get older. Spend time with them. It will mean a lot to them and more to you.