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Tag Archives: 529 college savings plan

Which 529 Plan Is The Best?

choosing a 529 plan

I think I can speak for most parents when I say that we want our children to have a better life with less struggle than we had as children and young adults. By no means have I had a rough life, but there are some things that weren’t available to me or that my parents didn’t know how to provide that I would love to give to my daughter. One of those gifts is financial help with a college education. I think the best way to save for higher education is with a 529 college savings account, but which 529 plan is the best? What Are 529 Plans? 529 plans are similar to Health Savings Accounts except the money is used for college expenses instead of health care. You don’t get any immediate federal tax breaks, but money contributed to eligible plans earns interest and can be withdrawn, tax free, if it’s used for tuition, fees, books, room and board, or other qualified education expenses. There are two basic types of 529 plans. Self directed plans allow you to use contributions toward any accredited college or eligible education institution. Prepaid tuition plans allow parents to pay today’s dollars for future ...

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Help Me Spend $1100!

We had a pretty good year at work in 2012, which is great. When you have a business, you want to make money. However, that also means a bigger tax bill.  Because I’m not a fan of handing over money, I’m always on the lookout for legal ways to minimize taxes. I’d already maxed out my employer retirement plan. I put quite a bit into my HSA. It seems like I’ve already done several of the great suggestions Krantcents recently recommended. What else could I do? My accountant, who has an LL.M. in tax law,  suggested that we hire my daughter. Legally, you can hire kids when they are 7 years old to do basic tasks like filing or cleaning up. My daughter was only five. He told me to set up a photo shoot and use her pictures for advertising purposes. I could then pay her as a model. He said to think of child actors and models in Hollywood and how much they were paid for services. It was perfectly legal, and he said he would go to bat on that any day. Good enough for me.

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