529 plan grandchildren

dentmom4
Thu, 16 Dec 2021 02:32:03 +0000

I had 529s for each child, enough to cover the balance after their merit scholarships plus some toward a year of grad school. I invested early on in our state’s plan. States vary by the maximum in each beneficiary’s account. Michigan, my state, is $500K. D2’s made a lot of money because I rode it out aggressively longer than her siblings. I transferred some of it to D1 to pay toward dental school. I’ll use up D2’s in January to pay toward her 2nd semester of grad school.

The earnings on the account are not taxable if the money is used for qualified educational expenses.

I’ve started accounts in our state plan for both granddaughters and contribute every year.