529 Plan and College Savings

Archive for May, 2010

Question: How should I go about starting a 529 and is now a good time?

I have two daughters and have their college money sitting in a savings account. I know I need to start their 529 plans. Should I do it before 2008 ends? Does the economy right now affect us? Who do I call to start? We live in MD – I am going to go with a MD plan. Thank you!

Answer: You can contribute $12,000 to each of their 529’s per year without any estate tax consequences. Your spouse can also contribute $12,000 each. If you have more money than that, I suggest put in 24,000 each this year before year end and the rest next Jan. Otherwise, there is no hurry.
You can google MD 529 to find the plan’s websites and phone numbers.

College Savings Plans of Maryland 1 of 5