20

With that close an age gap it would probably make sense to use separate 529s. Technically you can transfer funds and even change the beneficiary from one sibling to another, but if both are in college at the same time you would probably want to let both of them use 529 money at the same time. Also, with multiple accounts you have more flexibility over the ...


12

If you have the option of a high deductible health plan you might consider using a High deductible plan with a Health Savings Account (HSA) in the years before the first child is born. You can contribute the maximum into the HSA but don't use the money. You may decide that in the year the child is born to pick a non-high deductible plan, but because the ...


11

There aren't any. Of these significant, relatively predictable expenses I would not necessarily classify child birth cost as either significant or predictable. Depending on your health insurance a healthy baby birth will cost very little out of pocket. Even with crummy insurance, many children can be birthed for less than $1,000. Often prenatal ...


10

Criteria would be the ability for him to ... see the remaining balance. For just the two of you, a shared Google spreadsheet is far and away the simplest path to satisfying this criterion, while dwizum's answer handles the other two. EDIT: presuming you aren't charging him interest, here's an example spreadsheet.


10

First off, we should clarify what you mean by "529 - money in the kid's name". Usually, this means that the parent sets up a 529 account in their name, but puts down their kid as the beneficiary. Therefore the parent is the custodian, or the "owner" of the account. However, if the student is both the beneficiary and the custodian of their own account, that ...


10

In my opinion, this is probably a personal choice. With no extra paperwork, you and your spouse can each gift $15000 per child. Unless you are planning to gift more than $30K combined, one acct, to keep it simple, is enough. If, on the other hand, your total gifting will exceed this, the simplest approach is to use the 2 accounts, and not need to use the ...


6

Separate accounts may be better if you live in a state where 529 contributions are deductible from your state income taxes. OP did not list a state, but you may need separate accounts to claim the deduction for both children. In Maryland the deduction is "per account"[1] or "per beneficiary", and each account can typically only have one beneficiary at a ...


5

The Child Tax Credit is a credit, not a deduction, so you do not need to itemize to get the credit. Qualification is based on your adjusted gross income, which is calculated before the standard deduction and most itemized deductions. The tax credit, $2000 per child, is 'refundable' up to $1400 per child. This simply means that if you look at your tax ...


4

There are long articles, and full books that address this topic. In general, the answer is yes. Money available is treated according to how it's owned. And your retirement accounts don't count towards that formula, but money in a child's name does. Keep in mind, your income and other assets also count towards the expected parental contribution. This is why ...


4

One option is to talk to a local bank or credit union, and see if your plans would integrate well into their online banking tools. You may be able to kill two birds with one stone - get him on a plan to pay you back, and also get him some exposure to "real" banking tools. For instance, my credit union has a tool in our online banking platform that lets you ...


3

On the new postcard-sized 2018 Form 1040, there is a box that looks like this: The 2018 Form 1040 instructions say this: If you have more than four dependents, check the box on the right side of page 1 of Form 1040 (just above the Dependents section) and include a statement showing the information required in columns (1) through (4). It seems that, if ...


3

Consider a UTMA: One common form of custodial account is known by the acronym UTMA. UTMA stands for the Uniform Transfers to Minors Act, which is the legal provision in many states that authorizes a custodian to hold assets on behalf of a minor child until the child reaches the age of majority -- typically either 18 or 21. Although the custodian has legal ...


3

Are there different people that would be interested in contributing for different kids? This is generally only an issue if your first kid is from a prior marriage/ relationship. If there is a group of people related to one kid and not the other, having separate plans probably makes it easier for them to contribute. How concerned are you about equality ...


2

Have you considered that compensation for services provided could be considered wages deductible from your own personal business income [which is perhaps what you will be earning from this idea]? You will be in a higher tax bracket than your niece, so it is not a penalty to do things correctly [provide compensation for services rendered, instead of ...


2

I'll take a stab at answering my own question since there haven't been other useful answers or suggestions. I did some additional research but it was hard to find detailed information (let alone best practices) about freezing minors' credit reports. What I Decided to Do Ultimately, my spouse and I opted not to freeze our kids' credit reports. Minors' ...


1

A product that immediately comes to mind is the Westpac Bump Account. But there seems to be plenty of products available, Finder has a list of such products. You'll need to get independent advice on how taxes on interest earned are handled. As for investing later on, a structure that you may want to look into are investment bonds. They're popular for their ...


1

With the new tax code of 2018 we have For contributions of cash, check or other monetary gift (regardless of amount), you must maintain a record of the contribution: A bank record or a written communication from the qualified organization containing the name of the organization, the amount, and the date of the contribution. i.e. all cash ...


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