GP-College Saving Vehicles

Question 1

529 Plans / QTPs

Answer 1

Tax def’d saving (nonqual taxed @ wd)
Contrib’s R State Tax deductible
Tax-free wd 4 Qual’d Ed
Trade sch & apprent’ costs qualify
10k/yr 4 K-12 & 10k/lifetime 4 Ed loans
Parent owns account; txfr 2 family ok
Completed gift for estate purposes
Can roll unused $ to Roth

Question 2

Coverdale savings accounts

Answer 2

$2k max contribution per person/year
Contrib’s must start by age 18* of benefic
Spend by age 30 or txfr to a family memb
Phaseout @ $190k AGI 4 MFJ
Quail’d: Kind-College, apprent & $10k loans
K-12 covers more than 529 - tuition only
* special needs exceptions

Question 3

Tax Strategy for EE Bonds in UTMA

Answer 3

Parents saved $10k/yr for 20 yrs for $100k college fund
Best way to pay taxes: have interest taxed each year to son