Tax Saving Techniques - 529 Plan

This plan allows contributions to beneficiaries totaling up to $265,000. These contributions can be, in a single year, as much as $55,000.00 individually and $110,000.00 jointly with a spouse, provided you do not make another contribution for the next five years. The earnings grow completely free of federal income tax and can be invested at your discretion. Unlike a custodial account (CUTMA), the funds in the 529 Plan can remain under your control even after the beneficiary is of legal age. The Plan allows the beneficiary to attend any accredited college in America. You are entitled to select or change the designated beneficiary (to a member of the student’s family) or even take the funds back (which may be subject to a penalty) in the event that the beneficiary elects not to attend college.