Rhinebeck Blogger David J. Albahary’s The Green – Good News for 529’s in 2013

 Tax-advantaged college investment accounts, or more commonly known as 529 plans, will reap some more benefits in 2013 as there are three significant changes parents should be aware of in the new year.  To begin with you can now gift up to $14,000 annually before the there is any gift tax.  What makes a 529 plan so unique is that you are able to gift up to a five-year time span all in one lump sum.  As a result each parent can gift to his or her child up to $70,000 or both parents can gift a total of $140,000.  In addition to larger gifting amounts, only $13,000 per year per parent in 2012, the new laws have expanded what is considered a “qualified” expense.  Now families can include laptops, iPads, internet service, and software to the list of “qualified” expenses.  And finally, mutual fund management fees for  529 plans have been declining in light of tougher state regulations and more competitive bidding among plan management companies.

David J. Albahary, CFP®, CCPS founded College Planning Connections, LLC in 2012 to help make college more affordable for families. 

David is a Registered Investment Advisor with over a decade of experience in the financial service industry. He is a Certified Financial Planner™ and a Certified College Planning Specialist. In addition to being a member of the Financial Planning Association (FPA) and the National Institute of Certified College Planners (NICCP), he is a member of the National College Advocacy Group (NCAG) which is a non-profit organization responding to challenges facing college bound students and their families.

For more info on College Planning Connections:

www.collegeplanningconnections.com