Dr. Friday discusses the benefits of 529 college savings accounts for gifting and tax-free growth. Each year, contributions up to $18,000 are considered gifts, which grow tax-free and can be used for education expenses. Start investing in your children’s or grandchildren’s future while enjoying significant tax advantages.
Transcript:
G’day, I’m Dr. Friday, President of Dr. Friday’s Tax and Financial Firm. To get more info go to www.drfriday.com. This is a one-minute moment.
Maybe you’re thinking about helping out the kids or the grandkids usually and it’s called a 529 college savings account. The IRS looks at this as basically every year you can contribute up to eighteen thousand dollars and they consider it gifting. So that way then every year that money gets put in you do as the person giving the gift it’s taxable income if you haven’t already paid tax on that money. But the person receiving it the child the fund is going to grow tax-free they can use it for college or for other things but mostly for college and that way you’re gonna save tax dollars they’re gonna have a growing tax-free which will put more money in their pocket. 615-367-0819.
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