When you are planning your estate, you may decide that you would like to provide educational opportunities for younger members of the family. This can be the greatest gift of all because you are giving them the ability to achieve their full potential as human beings.
529 Savings Plans
A 529 savings plan is the ideal approach for many people. The structure is similar to the Roth individual retirement account.
You contribute into the account after you have paid taxes on the income. The growth is not taxable, and when the student withdraws money to go to school, the distributions are not subject to taxation.
Traditionally, 529 plans were strictly college savings plans, but this restriction was removed when the Tax Cuts and Jobs Act went into effect in 2018. You can now withdraw up to $10,000 per year to pay for K-12 expenses.
Savings Plan vs. Prepaid Tuition Plan
There are two different types of 529 plans, and they both have their advantages. With the traditional savings plan, the money in the account can be used to pay expenses at any approved institution.
In our state, we have the Connecticut Higher Education Trust (seminar page to see the schedule. When you identify the session that you would like to attend, follow the simple instructions to register.
Mr. Nirenstein is licensed to practice before the courts of the State of Connecticut and the United States District Court. He is a member of the Connecticut and Hartford County Bar Associations, and the Estate and Probate, Elder Law, Business Law and Real Estate Sections of the Connecticut Bar Association.
- High-Net-Worth Estate Planning: Strategies to Preserve Your Wealth - July 30, 2026
- How to Use a Living Trust to Stagger an Inheritance - July 23, 2026
- Is a Handwritten Will Valid? - July 16, 2026
What’s an “Atom Bomb” or “Contingent Remainder” Beneficiary?
( By appointment only )