Use the 529 'Grandparent Loophole' to Maximize College Savings
For the first time this year, on the 2024-25 FAFSA, students are no longer required to report cash gifts from a grandparent or contributions from a grandparent-owned 529 savings plan. As Shane with Winston and Companies explains to Erin Kennedy, that means, grandparents can now use a 529 plan to fund a grandchild's education without impacting the child's financial aid eligibility.
Shane also walks through the benefits of contributing to a 529 plan, including perhaps the biggest perk following the passage of the SECURE Act 2.0: up to $35,000 of unused funds in a 529 account can be rolled over into a Roth IRA for your grandchild, giving him or her a leg up on retirement planning!
If you'd like to talk about how to open a 529 account, or if you'd like to learn about other ways to help your grandchildren financially, please call Shane at 602-456-1928 or visit www.WinstonandCompanies.com
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