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 ...


9

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 ...


7

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 ...


4

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 ...


1

I'll mostly repeat my revised detail from the other answer thread. The 2019 version of the IRS Publication 970 seems to be fairly clear that you have to take the distribution from a Qualified Tuition Program (e.g. a 529 account) in the same year as the QHEE. I base this on the following three citations from that document, in addition to being unable to ...


1

According to the information you quoted. If you use money from a New York state 529 plan for nonqualified expenses, then they want you to repay them for the state tax break. For example if you pull out $5,000 from the 529, then the state wants you to show that you had qualified expenses. But K-12 tuition doesn't meet the states definition. So they want your ...


1

Here are the pertinent facts as far as I can tell: Arizona hasn't conformed to the federal law that allows 529 plan withdrawals to be used for K-12 tuition. Arizona has a deduction for 529 plan contributions that does not depend on which state's HSA plan you use (you're free to shop around): 43-1022. Subtractions from Arizona gross income The ...


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