Opening a 529 account for a grandchild
Hello Terry, my wife and I are both residents of Illinois as is our first grandchild. We would like to open a 529 account for the child and start the account with a gift contribution. What is the best way to name the account? In our daughter’s name and her child or our name and the child? In either case do we get to take advantage of the Illinois tax benefit? Thanks
Terry Says
You can use either, and if you’re residents of Illinois you get a tax deduction for up to $10,000 of contributions, each.
Go to www.BrightStart.com to open the account.
With recent changes in the tax law it does not matter whether parents or grandparents own the account since they now impact FAFSA equally.
