Grandparents

529 plans offer unique benefits for grandparents, including reducing estate tax exposure, being able to retain control of the assets throughout the life of the account, ease of management and flexibility. 529 plans are one of the best ways for grandparents to save for college because while contributions to a 529 plan are not deductible at the federal level, over 30 states offer a tax deduction or credit for contributions.

Historically, one of the major concerns about grandparent-owned 529 plans was their impact on federal financial aid when withdrawn to pay for a grandchild’s education. Fortunately for grandparents, the FAFSA simplification  scheduled to be implemented for the 2024-2025 award year will no longer require their financial support to be reported.

Download the Family Guide to College Savings Ebook

The Savingforcollege.com Family Guide to College Savings is a must-read for Grandparents helping save for college costs. Whether your grandchildren are toddlers or teenagers, this free ebook will help you develop an effective strategy for supporting their education.

Download Family Guide

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FAQs about grandparents and 529 plans