College savings not used
Money saved for nephew to go to college. He is not college material but has chosen to be a mechanic which he loves and is good at. What is a alternative? Can I give him the money? I know I will take a hit, but would subtract that from amount from the balance I would give him.
Appreciate your great financial knowledge in helping us keep on track.
Thank you and continued success.
Terry Says
Is the money saved inside a 529 College Savings Account? If so, under the new tax law it can go into a ROTH IRA for the 529 beneficiary and avoid any tax penalty. BUT this doesn’t start until 2024 — so wait a year. The maximum amount that can be rolled is $35,000.
If it’s money you have outside a 529 or retirement plan, then you can gift up to $17,000/year with no tax consequences.
