my client just came into a 150k lump sum.
his only child is a freshman in college.
are there any pitfalls to be aware of regarding starting a 529 plan?
some random thoughts I had:
I believe each parent could contribute a max of $55,000 for a total of $110k without a gift tax
I asked the client to check the estimated costs over the next four years as it’s a five year program.
Would it be accurate to say that we’d rather underfund this account than overfund?
I’m recommending an asset mix of about 50% cash money market, 25% fixed income and 25% blue chips for growth.
I just never had a case before where they were contributing to a 529 while the child was actually in college already.
Thanks in advance for any valuable feedback.
Sounds to me like you're on the right track.....although maybe the $ in stocks is kind of high.
Are the tax savings really worth it to tie up the money in a 529?