When families first open a College 529 plan, their primary concern is to ensure they will have enough to cover the rising costs of college tuition years down the road.
Before the existence of 529 plans, there was the UTMA, Uniform Transfers to Minors Act. Parents and grandparents could create UTMA accounts in their child’s name, put money in them, and not only save for college (or something else) but also avoid paying the higher tax percentages of the parent. A perfect tax shelter…your children! In the 80’s, the government got wise and passed “kiddie tax” laws to remove this shelter loophole. As a result, UTMA accounts have tax implications you need to consider when choosing this savings product.
No spam, guaranteed.
Please read our Privacy Policy.
Capstone Wealth Partners is a fee-only independent Registered Investment Advisor in Columbus, Ohio. We are financial planners for college-bound families.
The Capstone Blog offers up our best ideas on how to save and pay for college, all while staying on track for a confident retirement.
Register For Our “Smart Payment Strategies” Webinar!