Important Similarities To 529 Plans
- Money in both a Coverdell ESA and a 529 plan is not considered the child's (beneficiary's) money when applying for federal financial aid as long as the owner of the account is someone other than the beneficiary, such as a parent. This works to increase the child's potential financial aid because parents are expected to contribute only around 6% of their assets to finance college education, as opposed to the child's 35%.
- The custodian of both an ESA and a 529 plan can designate a new beneficiary without incurring taxes or penalties provided that the new beneficiary is an eligible family member of the previous beneficiary.
Read more about this topic: Coverdell Education Savings Account
Famous quotes containing the words important, similarities and/or plans:
“Losing face is as important to people as losing bark is to a tree.”
—Chinese proverb.
“One internationally known twin researcher sees similarities between twins’ relationships and those of couple who have been married a long time. Fifteen-year-old twins, as well as spouses approaching their fortieth anniversary, each know their partners’ likes, dislikes, habits, and idiosyncracies as well as they know their own.”
—Pamela Patrick Novotny (20th century)
“In order to become spoiled ... a child has to be able to want things as well as need them. He has to be able to see himself as a being who is separate from everyone else.... A baby is none of these things. He feels a need and he expresses it. He is not intellectually capable of working out involved plans and ideas like “Can I make her give me...?” “If I make enough fuss he will...?” “They let me do ... yesterday and I want to do it again today so I’ll....””
—Penelope Leach (20th century)