Comments on: Grandma’s 529 Account Probably Better

By: Cavalcade of Risk #44: Risk Is Everywhere Edition

Cavalcade of Risk #44: Risk Is Everywhere Edition — Wed, 30 Jan 2008 15:13:33 +0000

[...] Grandma’s 529 Account Probably Better @ American Consumer News Which is better: a parent who sets up a 529 plan for their child’s college savings or a grandparent? A 529 Plan is a college savings plan operated by each state. [...]

By: The Honest Dollar | Carnival of Personal Finance #137 at The Dividend Guy

The Honest Dollar | Carnival of Personal Finance #137 at The Dividend Guy — Tue, 29 Jan 2008 02:49:05 +0000

[...] “Grandma’s 529 Account Probably Better” at American Consumer News. My boyfriend’s whacky college savings plan is to give his parents legal guardianship of his children. I forget how this was supposed to help with college savings, but I think ACN’s idea is much better: use grandparents’ 529 plans to pay for college, since these won’t be factored into financial aid calculations. [...]

By: Carnival of Personal Finance #137 - The Passion Edition » The Dividend Guy Blog

Mon, 28 Jan 2008 05:22:11 +0000

[...] This was an interesting question. Matt from American Consumer News asks who is better to contribute to a 529 account – parents or grandparents. Personally, I support my kids grandparents helping out with their education, however their are tax consequences to consider. Check out Matt’s post at Grandma’s 529 Account May Be Better. [...]

By: debbie

debbie — Fri, 25 Jan 2008 01:29:16 +0000

Hi Jay-
the tax benefits will vary- but federal financial aid rewards are determined by calculating the parents assets- so if the parents have the 529 account in their name that money will reduce the amount of financial aid a student qualifies for. If a grandparent has the account in their name however, it won’t affect the amount of financial aid they qualify for.

By: Jay, memberspeed.com

Jay, memberspeed.com — Thu, 24 Jan 2008 13:28:55 +0000

Since each state has an altogether different 529 Plan tax benefits, and can vary depending on the contributor’s age, then I guess the issue of whether it is better for a parent to set up a 529 plan for their child’s college savings or a grandparent is debatable…