Alison Brew photo

Alison Brew

Account Manager

 

LTM Client Marketing

45 Prospect Ave,  Albany, NY 12206

 

Phone: 518-870-1083

Fax:     800-720-0780

 

Email: abrew@ltmclientmarketing.com

Website: www.ltmclientmarketing.com

April 2023

Who Can Contribute to a 529 Plan?

Who Can Contribute to a 529 Plan

You can help any child save for college expenses by contributing to a 529 college savings plan. All 529 plans accept third-party contributions, regardless of who owns the account. That means anyone, including grandparents, aunts, uncles, or even friends, can help a child save for college.


The money you invest in a child’s 529 plan grows on a tax-deferred basis, and distributions are completely tax-free when used to pay for the child’s qualified education expenses. Because of this tax-free compounding, even a small gift can potentially grow substantially over time. Every dollar a student has in college savings is one dollar less that they will have to borrow in student loans.


Beginning in 2024, beneficiaries can rollover unused 529 funds to a Roth IRA. Several rules apply, so consult your tax professional.


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