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College
Costs Primer for Parents
~ A Note from
Gil Davis, CPA / PFS ~
 Are
college costs scaring the pants off of you?
See my tips below to keep yourself fully clothed during these
costly years! |
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Uniform Gift to Minors Act (UGMA) accounts are no longer
preferable for college savings. |
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Money saved in a child's name works against financial aid
calculations. |
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529 plans have become the most popular, flexible, and tax free
method for college savings. |
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I'd strongly recommend an "Investment 529" over the "Tuition
529" now available. |
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Although annual gift limitations are $12,000 per year per child,
per parent, 529 plans can be front loaded (up to $120,000) with
the little-known gift election. |
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Corporate college savings plans are one way to get professional
advice and avoid paying a sales commission. (These are available
to almost everyone!) |
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IRAs can be used to pay for college expenses while
avoiding early distribution penalties. This method, however,
should be used only in extreme situations. |
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Avoid funding college savings ahead of retirement savings.
Remember: There are no student loans or financial aid available
for retirement. (Call me to project your future retirement
needs.) |
| |
For help with these or any other financial planning issues,
contact:
- Gil Davis, CPA,
PFS
Director of Financial Services
CSD Financial
(412) 881-4411
Davis@CaseSabatini.com
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Disclaimer: To ensure
compliance with requirements imposed by the Internal Revenue Service, we
inform you that any tax advice contained in this communication (including
any attachments) was not intended or written to be used, and cannot be used,
for the purpose of (i) avoiding any penalties that may be imposed, or (ii)
promoting, marketing, or recommending to another party any transaction or
matter addressed herein. |