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Privacy Notice
Legal Notice
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Recent
Tax Pronouncements
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| The Economic
Growth and tax Relief Act of 2001 has enhanced the advantages of § 529
Qualified Tuition Plans. Planning for children's college education costs
is an expensive undertaking. The College Board estimates that at the
current rate of inflation, the cost of an education at a private
university for a child born in 2001 will approximate $200,000. The newly
enhanced § 529 Plan can alleviate some of the financial concerns of a
college education. Contribution to a § 529 plan can be made without
income limitations. These contributions are not tax deductible,
however, beginning in 2004, withdrawals for qualified education costs are
not taxable to the beneficiary, he/her parents, or the donor. Unlike UGMA/UTMA
accounts, control over § 529 plans do not automatically transfer to the
beneficiary upon reaching the local age of majority.
The maximum yearly
contributions to the plan is $10,000, however, an advanced 5 year
contribution of $50,000 can be made in a year without exceeding the
federal gift tax exclusion. For married taxpayers, electing to "gift
split" a $100,000 5 year advance gift can be made at one time. This
also provides an effective estate planning tool. For more information on
the implementation of a § 529 plan, please contact us. |
Please Call for more information and for previous Pronouncements.
125 Patriots Ridge Drive
Deptford, NJ 08096
(856) 853-4773
Fax (856) 853-4773
E-Mail: mbonaventure@verizon.net
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