NJFISH

I set one up for my 8yo a few years ago. I only contribute about $ 100-$ 200/month. I also have an 8 month old now. Since a 529 (I think) can be used for education by any sibling does it make anymore sense to just double my contribution or should I start a new one?

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Jeff

mikeszak

it is my understanding that you must start one for each child to use the funds for that child's education (or other qual. expenses) on the statements i recieve for the two i have set up it clearly states the child's name on each account. in order to enjoy the tax benefit you must use the money for qualified expenses and part of that qualification is that it must be used for the child named on the account. Unlike an UGMA account this money is yours and not your child's however if you use it for other purpose ot other children, you will get hit with the tax. hope this helps.

jerseysportfisher

The 529 for my son is attached to his social, like mike said, the statements are in his name. only the guardian or he can take out on it. But you might want to consult with your brokerage to see what rules apply to yours.

fishingfun

Not sure about your question but they also have a great plan for grandparents to set up an account and get some kind a tax break. I have the info on that but have not read the details.I'm just tired of the crap they give the children that will be gone in a few weeks.

camnbo

You can use the funds in any child's account for education expenses without tax penalty for any child. If you don't exceed the yearly max contribution in the one account which I believe is in the neighborhood of 23K, you don't need an additional account. There is also a ceiling lifetime contribution cap of somewhere around 250K. So, as long as those maximums are not met, you don't need additional accounts for additional liabilities, I mean, kids.