How to Save for your Kids (or Grandkids) College Education

Saving for college and saving on taxes can be accomplished thanks to Education Savings Accounts, commonly referred to as 529 plans.  The number refers to the section of the Internal Revenue Code which authorizes these accounts. As we all know, it is challenging to use gifting as a tax efficiency strategy because of the existence of the federal gift tax. This levy is unified with the estate tax. While there is an exclusion of $5,43 million for the year 2015, it is just one unified exclusion that applies to gifting as well as the value of your estate. To provide clarity by way of example, this means that someone who gave away $5.43 million (currently adjusted for inflation) in taxable gifts throughout his or her life using this exclusion would have nothing left to apply to his or her estate. In addition to the above-noted lifetime exclusion, there also is an annual $14,000 exclusion (adjusted for inflation) that exists outside of the unified exclusion. You can give as much as $14,


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