Mari spoke with CNBC last week about why 529 plans can be a great way to transfer wealth to younger generations.
You may already be familiar with 529 plans as the best way for most American families to save for college.
But 529s also have incredible tax advantages that make them ideal for passing on wealth to children and grandchildren, as Mari discussed with reporter Kate Dore of CNBC.
Money can grow tax-deferred within the plans for decades, and earnings are totally tax-free when funds are used to cover eligible higher education or K-12 expenses, or to pay down up to $10,000 in college loans. It’s easy to transfer unused funds to another family member, and shift income to lower-earning individuals to minimize any taxes that could apply.
Parents or grandparents can gift significant amounts of money to younger generations by funding their 529 accounts, without paying any income or estate taxes.
“This is a great way to get grandparents to start making gifts to younger generations and transferring their wealth in a way that really matters,” Mari told CNBC.
For more details, check out Kate Dore’s article on CNBC.