New Push for 529s – Wall Street Journal – 11/05/12

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The Wall Street Journal

The Journal Report – Investing in Funds – College Savings – November 5, 2012

New Push for 529s

Advisers have added reasons to suggest these plans

By AnnaMaria Andriotis

Meanwhile, pending tax changes have given advisers a timely reason to talk up the tax-favored 529 plans now—although clients should be sure to weigh other considerations along with tax factors.

Roughly 10 million investors have a 529 college-savings plan, according to Financial Research Corp.

Comments November 5, 2012

The current contribution limit per year to a 529 is $13,000 per beneficiary – that is $26,000 for a husband and wife, per beneficiary. A single contribution, totaling $65,000 per beneficiary, is permitted as long as no further contributions are made by that contributor (donor) to the same beneficiary until the sixth year – that is $130,000 for a husband and wife, per beneficiary.

On October 18, 2012, the IRS increased the 2013 contribution limit per year to a 529 to $14,000 per beneficiary – that is $28,000 for a husband and wife, per beneficiary. A single contribution, totaling $70,000 per beneficiary, is permitted as long as no further contributions are made by that contributor (donor) to the same beneficiary until the sixth year – that is $140,000 for a husband and wife, per beneficiary.

Aaron Skloff, AIF, CFA, MBA
CEO – Skloff Financial Group

Aaron Skloff, Accredited Investment Fiduciary (AIF), Chartered Financial Analyst (CFA), Master of Business Administration (MBA), is the Chief Executive Officer of Skloff Financial Group, a Registered Investment Advisory firm. The firm specializes in financial planning and investment management services for high net worth individuals and benefits for small to middle sized companies.  He can be contacted at www.skloff.com or 908-464-3060.

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