Investing
Zoe Team
4 min read
Discuss contribution goals early with parents to align on expectations and financial capacity.
Consider utilizing 529 plans, which offer tax-advantaged growth for educational expenses.
Explore various gifting strategies that allow grandparents to contribute directly without adverse tax consequences.
Yes, you can pay tuition directly to the institution; this typically avoids gift tax limits, but check with a tax professional regarding specific IRS rules.
529 plans allow your investment to grow tax-free, and withdrawals are tax-free when used for qualified education expenses for your grandchild.
Distributions from a grandparent-owned 529 plan no longer impact FAFSA financial aid eligibility for the student as of recent changes to the program.
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