A contribution to your child’s 529 account is, according to the IRS, a gift to your child. This means that it’s subject to annual gift limits: any individual can gift another individual $15,000 in 2021 without reporting it anywhere or paying any taxes on it. In 2022, the limit– or exclusion amount– goes up to $16,000. Anyone who contributes more…
Tis the season to put your money where your mouth is. Do you always say, “I wish my kids didn’t get so much stuff”?? If so, you can give family and friends another option this holiday season: Making a gift to your child’s 529. Most 529 plans allow you to create a gifting page or link, allowing others to contribute…
Families of college-bound students are always looking for strategies to manage their Expected Family Contribution, and I’m happy to oblige. However, lowering your EFC is no guarantee of getting financial aid. And that’s why net cost is important. Your EFC is what the federal needs analysis methodology says is the amount you can spend on college. You can estimate it…
The College Board’s annual Trends in College Pricing and Student Aid report was released recently. Among the headline findings: college tuition prices increased at extremely low rates for the second year in a row, reflecting both a combination of continued impacts of the pandemic and enrollment pressures from demographic trends. Average net prices, adjusted for inflation, are at the lowest…
Filing the FAFSA raises tons of questions for divorced parents. Here are some answers. Do both parents need to fill it out? The FAFSA only requires the “custodial” parent to provide income and asset data. The CSS Profile requires both parents to fill it out. Which parent is the custodial parent? Currently, the FAFSA says the custodial parent is the…