From the tax adviser: Planning for higher education

IRC section 529 qualified tuition programs have become more popular due to the Economic Growth and Tax Relief Reconciliation Act of 2001 provisions that ended the taxing of distributions used to pay qualified higher education expenses. Section 529 plans can be used to move funds out of an estate to...

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Bibliographic Details
Published in:Journal of Accountancy 2002-10, Vol.194 (4), p.102
Main Author: Laffie, Lesli
Format: Article
Language:English
Subjects:
Beneficiaries
Couples
Estate planning
Fines & penalties
Gift taxes
Higher education
Internal Revenue Code
Planning
Qualified tuition programs
Section 529
Online Access:Get full text
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Summary:IRC section 529 qualified tuition programs have become more popular due to the Economic Growth and Tax Relief Reconciliation Act of 2001 provisions that ended the taxing of distributions used to pay qualified higher education expenses. Section 529 plans can be used to move funds out of an estate to minimize estate tax and avoid gift tax. Although funds are removed from the estate, the donor retains full control over the account. Tax planning also covers section 529 distributions not used to pay college expenses. The states were required to charge a 10% penalty on the earnings portion of the distribution.
ISSN:0021-8448
1945-0729