Skip Navigation Links

Blog

Changes to 529 Savings Plans

February 5, 2013
Changes to 529 Savings Plans

by Suada Kolovic

Figuring out how you’re going to pay for your college education can be intimidating. No one wants to pay off student loans for the rest of their lives, full-tuition scholarships are rare and federal student aid seldom covers all college costs but if you’re lucky enough to have a parent or relative willing to help curb the financial strains, it’s important to note that college savings plans are becoming increasingly flexible and affordable. Here are some of the changes to the 529 savings plans for 2013:

  • Increase gift tax exemptions: Grandparents can gift $14,000 annually before they’re charged a gift tax. Since five years of the exempted amount can be gifted at one time, that’s a five-year donation of $70,000 per grandchild while a married couple could potentially gift $140,000, provided they don’t give additional funds to the same grandchild in the five-year span.
  • Expanded qualified expenses: Last year, families couldn’t use 529 plan funds for laptops, iPads, internet service and software but the IRS is going high tech and realizes these are necessary items for higher education. Parents of a student who receives a full or partial scholarship can now use the funds to enhance their child’s educational experience.
  • Declining plan prices: Competitive bidding among plan management companies to run 529 plans on behalf of states is contributing to the trend of downward pricing. (For more information about 529 plans, click here.)

Posted Under:

529 Plan , College and the Economy , College Costs , College News , College Savings Accounts , Federal Aid , Financial Aid , Tips

Tags: 529 Plan , college , College and the Economy , College Costs , college news , economy , FAFSA , Federal Aid , Financial Aid , student debt

• Comments

Need a private student loan? Compare your student loan options all in one place. SimpleTuition

Recent Posts

Tags

ACT (18)
Advanced Placement (23)
Applications (69)
Athletics (17)
Back To School (72)
Books (60)
Campus Life (380)
Career (109)
Choosing A College (34)
College (812)
College Admissions (206)
College And Society (258)
College And The Economy (305)
College Applications (134)
College Benefits (250)
College Budgets (203)
College Classes (418)
College Costs (427)
College Culture (531)
College Goals (360)
College Grants (53)
College In Congress (74)
College Life (475)
College Majors (204)
College News (454)
College Prep (160)
College Savings Accounts (16)
College Scholarships (116)
College Search (104)
College Students (313)
College Tips (89)
Community College (51)
Community Service (36)
Community Service Scholarships (25)
Course Enrollment (17)
Economy (84)
Education (24)
Education Study (28)
Employment (35)
Essay Scholarship (38)
FAFSA (43)
Federal Aid (73)
Finances (58)
Financial Aid (310)
Financial Aid Information (20)
Financial Aid News (16)
Financial Tips (34)
Food (39)
Food/Cooking (25)
GPA (68)
Grades (76)
Graduate School (52)
Graduate Student Scholarships (19)
Graduate Students (62)
Graduation Rates (38)
Grants (60)
Health (34)
High School (114)
High School News (46)
High School Student Scholarships (106)
High School Students (209)
Higher Education (98)
Internships (457)
Job Search (156)
Just For Fun (85)
Loan Repayment (33)
Loans (39)
Money Management (120)
Online College (19)
Pell Grant (25)
President Obama (16)
Private Colleges (34)
Private Loans (19)
Roommates (86)
SAT (22)
Scholarship Applications (125)
Scholarship Information (101)
Scholarship Of The Week (189)
Scholarship Search (149)
Scholarship Tips (54)
Scholarships (322)
Sports (57)
Sports Scholarships (20)
Stafford Loans (24)
Standardized Testing (44)
State Colleges (42)
State News (31)
Student Debt (70)
Student Life (431)
Student Loans (127)
Study Abroad (64)
Study Skills (184)
Teachers (72)
Technology (100)
Tips (404)
Tuition (87)
Undergraduate Scholarships (35)
Undergraduate Students (154)
Volunteer (41)
Work And College (69)
Work-Study (19)
Writing Scholarship (16)

Categories

529 Plan (1)
Back To School (307)
College And The Economy (411)
College Applications (228)
College Budgets (310)
College Classes (490)
College Costs (651)
College Culture (831)
College Grants (127)
College In Congress (114)
College Life (759)
College Majors (283)
College News (753)
College Savings Accounts (52)
College Search (363)
FAFSA (98)
Federal Aid (96)
Fellowships (22)
Financial Aid (565)
Food/Cooking (70)
GPA (230)
Graduate School (104)
Grants (65)
High School (415)
High School News (154)
Housing (146)
Internships (491)
Just For Fun (178)
Press Releases (1)
Roommates (122)
Scholarship Applications (144)
Scholarship Of The Week (263)
Scholarships (501)
Sports (66)
Standardized Testing (57)
Student Loans (212)
Study Abroad (57)
Tips (625)
Uncategorized (7)
Virtual Intern (461)

Archives

< May June 2013 Jul >
SunMonTueWedThuFriSat
2627282930311
2345678
9101112131415
16171819202122
23242526272829
30123456

Follow Us:

facebook twitter rss feed
<< < 1 > 
Page 3 of 1