In an article published by The Wall Street Journal on June 7, 2015, Hirschler Fleischer tax practice chair Jamie Canup gives advice on 529 college savings plans, which some parents set up to help their children pay college tuition. He discusses the 529 plan, and whether a grandparent or other family member can make contributions to the fund directly, or if the donation must be made to the student’s parent who will then deposit it. Canup explains that it can vary: many 529 programs allow contributions from people who don’t own the account, but some don’t. He advises contributors to check the 529 plan’s rules, and also to ask about any state tax deductions. “Some 529 programs that allow non-account-owners to make contributions also provide [that person] with a state tax deduction or credit, if they’re a taxpayer in that state.” You may read the full article here.
Stephanie A. Hood