Three ways to help set your grandchildren up for success!
Grandparents dream of seeing their grandchildren succeed, and a college education is a great place to start. Did you know that you could help your grandchild pay for his or her future college expenses, while also taking advantage of a variety of tax benefits?
Here’s how grandparents like you can save:
Give A Gift
Education is a gift that never stops giving. If your grandchild already has a Maryland Prepaid College Trust or Maryland College Investment Plan account, you can make a gift contribution to their account.
- Contributions can go a long way regardless of the amount.
- It’s easy and hassle-free – Visit our Give a Gift page to download the form appropriate for the occasion you’re celebrating.
- You may be eligible for a special gift tax exclusion.
Keep in mind, each Maryland taxpayer who opens an account or contributes to an existing account is eligible for the Maryland State income tax deduction. Learn more about the details of tax benefits.
Learn how to give a gift now!
Open An Account
Help your grandchildren achieve their dreams by helping to fund their future education! If you’re a Maryland taxpayer, opening your own account for your grandchild can allow you to take advantage of special tax benefits like a Maryland State income deduction for your contributions. Opening your own account also ensures that you retain control of the savings and how the account is used. In addition, you can name a successor account holder to help determine who will assume control of the account in the future.
Maryland 529 offers two easy and smart ways to save. Plus:
- They’re affordable
- They’re flexible
- They’re tax-advantaged
Learn more about the features and benefits of Our Plans!
A 529 college savings plan is a smart way to stay in control of the assets now, and shows how much you value education and your family’s future. Plus, 529 plans offer special gift and estate tax benefits.
- Funds contributed to our plans, while considered completed gifts, are eligible for federal gift tax exclusion.
- All 529 college savings plans allow for contributions or payments to qualify for special 5-year averaging of the exclusion if a proper election is made.
For example: For the 2016 tax year, if the amounts contributed by you for your Beneficiary together with any other gifts to that person (over and above those made to your Account) do not exceed $14,000 ($28,000 for married couples making a proper election), no gift tax will be imposed for the year. Gifts of up to $70,000 can be made in 2015 ($140,000 for married couples making a proper election) for a Beneficiary and averaged out over five years for the gift tax exclusion. The ability to average a $70,000 gift over five years is a benefit that is unique to 529 plans.
This allows you to move assets into tax-deferred investments and out of your estate more quickly. However, you should read the Certain Federal Tax Considerations sections of our plans for further important information. In addition, you should consult with a tax or estate-planning advisor and research more information on estate planning before investing.