Monday, December 8, 2008

Targeting 529 Plans

According to the Kiplinger's Washington Editors, the IRS will clamp down on 529 plans this year and issue regulations that will target abuses. Under the microscope: putting as much as $120,000 into accounts for different people, then quickly changing the beneficiary on all of the accounts to one individual. And another ploy. . stuffing a lot of money into a 529 plan and later using the funds to pay for retirement. That allows contributors to circumvent the pay-in-ceiling and distribution requirements that apply to qualified retirement plans.

NICCP

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