This is the third article in a series. The first article focused on the use of UTMA / UGMA accounts. The second article focused on 529 plans. This third article focuses on ABLE accounts. ABLE accounts are like Section 529 plans. But, while 529 plans are for education expenses, ABLE accounts (under Section 529A) are for qualified disability expenses. While a 529 plan may be set up for anyone, an ABLE account only may be set up for someone who was disabled by age 26. Unlike a 529 plan, the … [Read more...] about ABLE Accounts
The prior article in this series examined the use of UTMA and UGMA accounts. This article will focus on 529 plans. The next article in the series will examine ABLE accounts. A 529 plan, otherwise known as a qualified tuition plan, is a tax-sheltered way of saving for education. 529 plans are sponsored by states, state agencies, or educational institutions. For a helpful guide to the various 529 plans, click here. A contribution to a 529 plan is not federally income tax-deductible, though … [Read more...] about What Are 529 Plans and What Are Their Advantages?
UGMA and UTMA accounts are accounts in which a custodian holds assets for a minor. An UGMA account is one under the Uniform Gift to Minors Act. An UTMA account is one under the Uniform Transfers to Minors Act. States which have such accounts have rules which can vary slightly. UGMA accounts must end when the minor reaches age 18 (or other age in the state statute), at which time the assets must be distributed outright to the (now former) minor. UGMA accounts are somewhat more limited in the … [Read more...] about What Are UGMA and UTMA Accounts?
As we gather around the Thanksgiving table, we see the faces of our loved ones and we contemplate how grateful we are for them and for all our blessings. “We must find the time to stop and thank the people who make a difference in our lives.” – John F. Kennedy, 35th President of the United States. “If you are really thankful, what do you do? You share.” -- W. Clement Stone, businessman, philanthropist, and author. There are different ways we can share. We can share with those closest to … [Read more...] about Being Thankful and Sharing Your Blessings