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:
“One of the most important findings to come out of our research is that being where you want to be is good for you. We found a very strong correlation between preferring the role you are in and well-being. The homemaker who is at home because she likes that “job,” because it meets her own desires and needs, tends to feel good about her life. The woman at work who wants to be there also rates high in well-being.”
—Grace Baruch (20th century)
“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)
“When I heard at the close of the day how my name had been receiv’d
with plaudits in the capitol, still it was not a happy night for me
that follow’d,
And else when I carous’d, or when my plans were accomplish’d,
still I was not happy,
But the day when I rose at dawn from the bed of perfect health,
refresh’d, singing, inhaling the ripe breath of autumn,”
—Walt Whitman (1819–1892)