Federal income tax law offers tax advantages to taxpayers that save money in specially designated accounts earmarked for future educational expenses (“529 Accounts”). In addition, federal income tax law also incentivizes...more
The cycle continues: Your adult children — one of the first generations to benefit from Section 529 plans — are saving for their kids’ college educations through 529 accounts of their own. Did you know that parents aren’t the...more
Beginning in 2024, due to new rules within the SECURE Act 2.0, federal law now allows for up to $35,000 in a 529 account to be rolled over to a Roth individual retirement account (“IRA”) for the beneficiary of the 529...more
Modern day divorce brings us assets in many forms and many of them are “pregnant” with tax consequence when they are divided. In almost all cases, couples who can’t agree on much do tend to acknowledge that money they have...more
Thanks to changes in the SECURE 2.0 Act, saving for education can now also help save for retirement. Beginning in 2024, the beneficiary of a 529 education savings plan account may roll certain excess account assets directly...more
In a divorce case, the Court has the task of determining whether the parties’ assets are marital or separate property. Once this determination is made, the Court will allocate the assets to each party in an equitable...more
Beneficiaries of qualified tuition programs under Section 529 of the Internal Revenue Code (“529 accounts”) will have a new opportunity starting January 1, 2024. Under SECURE Act 2.0 (the “Act”), 529 account beneficiaries...more
The SECURE Act 2.0 brings a slate of changes to retirement accounts and the way workers save for retirement. A summary of the Act can be found on the US Senate Finance Committee website....more
The President signed the Consolidated Appropriations Act, which included SECURE Act 2.0, on December 29, 2022. SECURE Act 2.0 has over 90 provisions, some major and some minor; some mandatory and some optional; some...more
Section 529 college savings accounts are used for tax-free education investments. When considering whether to create a 529 account, there generally is some apprehension that the person you are saving for won’t pursue a...more
529 Plans are state-sponsored investment programs that facilitate savings for qualified education expenses, including tuition, fees, room and board, and other education-related expenses. Unlike retirement accounts that...more
As the year is drawing to a close, we offer you some general advice regarding year-end planning and updated inflation-adjusted figures for 2023. Annual Exclusion Gifts - In 2022, the annual exclusion amount is $16,000...more
During our estate planning discussions, parents and grandparents often tell us about their hopes and dreams for the next generations of their families. Helping children and grandchildren achieve their full potential often...more
Currently, there is no lack of opinion regarding the millennial generation. As a millennial, it is not hard to understand why. However, despite the potential dividing views on this particular generation, there is one common...more
July 2022 Interest Rates for GRATs, Sales to Defective Grantor Trusts, Intra-Family Loans and Split Interest Charitable Trusts AFRs The July applicable federal rate (“AFR”) for use with a sale to a defective grantor trust,...more
Most people assume that they will not ever need skilled nursing care, but statistics show that that is not the case. Medicare may be available to pay for a limited period of care under limited circumstances, but if an...more
Providing for the educational needs of your children, grandchildren and even future generations is an honorable estate planning objective. What are your options for achieving this goal? A 529 plan can be a highly effective...more
If you are a parent or grandparent planning to contribute towards the education of a child or grandchild, a qualified state tuition plan is a tool to get the most out of your contributions. All states have established some...more
We have written about 529 Plans a few times before. The major points of those articles are: (a) 529 Plans are marital assets under Pennsylvania law; and, (b) 529 Plans can be UTMA (Uniform Transfer to Minor) Accounts in...more
My daughter turns 17 this week. As you might imagine, college is a frequent topic of conversation at our house. Where should she go to college? Will she be accepted at her top choices? What should she study? And most...more
In 2020, the Financial Industry Regulatory Authority Inc. (FINRA) settled alleged rule violations with various large investment firms, including Merrill Lynch, Citigroup Global Markets Inc. (CGMI), Transamerica Financial...more
If you have children one of the things that you have likely thought about is how are you going to afford to send your child to college. The cost of attending college continues to rise, and as we continue to hear horror...more
The Iowa legislature recently enacted several new laws affecting the College Savings Iowa 529 Plan and the IAdvisor 529 Plan (the 529 Plans) in passing HF2641. These changes broaden what constitutes “qualified higher...more
Google cut costs by rescinding offers to more than 2,000 contract workers due to the strains of the pandemic....more
Now that fewer people are subject to federal gift taxes, because of a generous $11.58 million lifetime gift tax exemption for 2020, a question many are asking is: “Do I need to file a gift tax return?” The short answer is...more