529 Child Savings plans

[Clark]

Why not consolidate it into one? Iowa's lets you give a link out for others to contribute to it.

You only get a deduction if you are the owner of the account

 

[packattack425]

529 are great and i feel like a lot of people are uneducated about the benefits.

I am also a believer in “you can finance college, you can’t finance your retirement.”

 

[Trice]

You only get a deduction if you are the owner of the account

Another good point. Grandparents have three options to contribute to 529s (perhaps more that I'm not aware of), each with their own pros and cons:

1. Contribute directly to your 529s. Easy to do - you can get a link direct from ISave 529 which walks them through it. Nobody is creating a new or extra account. But nobody gets a tax deduction because you are the owner and they are contributing.

2. They can open their own 529(s) for your kid(s). They get a tax deduction, but this complicates things for you because they control that account. How can you be sure they're funding it, or investing appropriately, or that the money will be there when you need it? If this was an important part of my funding plan, this option would make me nervous, though I suppose it can work if they own it and fund it but turn over control to you.

3. They could gift you the money and you contribute it to your own 529. As long as you aren't maxing out your tax deductions for the year, then you can deduct this contribution; maybe you give part of that back to the grandparent as thanks for the gift, obviously that's up to you.