Generation to Generation

One of the best ways for parents and grandparents to put money aside for the college educations of their children and grandchildren is through tax-favored vehicles authorized by Internal Revenue Code section 529 called “529 Savings Accounts.” During this era of ever-increasing college costs, when you first create a 529 Savings Account for a child, it is hard to fathom that – years down the line – the account could have any money left over after all the tuition bills are paid. But it can happen. The child’s college degree is earned in three years, not four; the undergraduate experience proves disappointing; or the graduate school tuition is covered by an employer instead. Whatever the reason, an overfunded 529 Savings Account can still lead to a good financial outcome if you know your options.