Grandparents can contribute $95,000 to a 529 college savings plan in one lump sum using a five-year gift tax election, letting it grow tax-free without counting as assets on the grandchild's FAFSA financial aid application.
According to the IRS, the annual gift tax exclusion is projected to be $19,000 per individual, or it is $19,000 per individual in 2025, meaning you can contribute up to that amount to a beneficiary to avoid gift tax returns. Uh, the one cool thing about the 529 is there's an exemption in the IRS code that allows you to make a 5-year election of that annual gift and put it in a 529 plan. So if you're sitting there as a grandmother or grandfather and you're thinking, man, I've, I've got a problem when it comes to the assets that I have, you can lump sum that annual gift exclusion times 5 into a 529 plan for your kids. And the great thing about that is if you own that 529 plan, then the withdrawals are not subject to FAFSA reporting, or the asset is not subject to FAFSA reporting for your grandchild. It's a little-known benefit of having their
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
