Comments on: 529 Plans: The Beneficiary Loophole & How to Save More for College http://blog.adamnash.com/2007/01/22/529-plans-the-beneficiary-loophole-how-to-save-more-for-college/ The personal blog of Adam Nash Sat, 11 Feb 2012 23:08:18 +0000 hourly 1 http://wordpress.com/ By: Don’t Feed the Alligators » Blog Archive » A 529 Plan for Each Child? http://blog.adamnash.com/2007/01/22/529-plans-the-beneficiary-loophole-how-to-save-more-for-college/#comment-25970 Tue, 10 Feb 2009 04:12:00 +0000 http://psychohistory.wordpress.com/2007/01/22/529-plans-the-beneficiary-loophole-how-to-save-more-for-college/#comment-25970 [...] You can start saving before you ever have kids, reducing the overall amount of saving that you have to do. (See The Beneficiary Loophole.) [...]

]]> By: Adam Nash http://blog.adamnash.com/2007/01/22/529-plans-the-beneficiary-loophole-how-to-save-more-for-college/#comment-3018 Fri, 09 Feb 2007 02:08:38 +0000 http://psychohistory.wordpress.com/2007/01/22/529-plans-the-beneficiary-loophole-how-to-save-more-for-college/#comment-3018 Hi Peter,

Actually, 529 Plans count as parental assets, so regardless of which child they are dedicated for, currently the college expectation of what you should contribute will be the same. Now, this could change over time – after all, financial aid formulas are up to the schools. But for now, most schools place 529 plans in the “parental assets” bucket, and they expect up to a 5.6% contribution of that, per-child, per-year.

This is the latest information I have on the topic, but please make sure you look into the financial aid policies and formulas for the school(s) you are interested in. These can and do change over time.

]]> By: peter http://blog.adamnash.com/2007/01/22/529-plans-the-beneficiary-loophole-how-to-save-more-for-college/#comment-3014 Thu, 08 Feb 2007 22:50:34 +0000 http://psychohistory.wordpress.com/2007/01/22/529-plans-the-beneficiary-loophole-how-to-save-more-for-college/#comment-3014 My understanding is that the 529 counts toward the decision for financial aid. Would it be beneficial to save all of the savings with child 2 or 3 as the beneficiary. And split just a portion off when child 1 is ready for college? Would it then appear that child 1 has less savings when applying for financial aid?

]]> By: Tom http://blog.adamnash.com/2007/01/22/529-plans-the-beneficiary-loophole-how-to-save-more-for-college/#comment-2999 Wed, 07 Feb 2007 02:47:05 +0000 http://psychohistory.wordpress.com/2007/01/22/529-plans-the-beneficiary-loophole-how-to-save-more-for-college/#comment-2999 The other benefit to one 529 account for all children, rather than one for each child, is that you may save of administrative costs. The Utah plan charges $5 for every thousand invested, but caps at $25K (or $125 fee). If you had 3 accounts, you would be paying up to $375 fee annually. For one account, no matter how high the value after $25K, you would only be paying $125, for a savings of $250 per year.

]]> By: Janet http://blog.adamnash.com/2007/01/22/529-plans-the-beneficiary-loophole-how-to-save-more-for-college/#comment-2804 Sat, 27 Jan 2007 04:14:07 +0000 http://psychohistory.wordpress.com/2007/01/22/529-plans-the-beneficiary-loophole-how-to-save-more-for-college/#comment-2804 I agree with you. It is great way to pass wealth from generation to generation if you have enough savings. Changing beneficary will allow you save more and pass the remaining amount from college expense to another child or another family member of your choice. In general, I get latest about 529 plans from http://www.plans529.com

]]>