529 plans great tax vehicles for grandparents, seniors or retirees

A Future Scholar College Savings Plan is not only a great way to save for a loved one’s future, it also offers tremendous tax advantages – especially for those who are retired.

In fact, as Brian Boswell with SavingforCollege.com recently wrote, 529 plans are a great option for grandparents, seniors or anyone who is retired but does not wish to take “RMDs” – or required minimum distributions – from their retirement accounts.

This makes especially good sense, Boswell noted, for those who don’t really need the distributions but are still looking to grow their savings.

“There are many strategies to delay and minimize RMDs, but at some point a percentage of assets in retirement accounts must be withdrawn and will be taxed unless donated to a qualified charity,” Boswell noted.

And the good thing about a 529 plan is that seniors can benefit from tax-deferred savings while retaining control of their assets in the event of an emergency, he said.

“That’s why we continue to tell people – and especially grandparents, aunts or uncles – about the fantastic tax advantages Future Scholar offers,” said South Carolina Treasurer Curtis Loftis.

In South Carolina for instance, those who file an S.C. tax return can deduct contributions made to a Future Scholar account from their state tax return.

“So this tax season, when you’re thinking about deductions and ways to save more of your money, you might want to keep Future Scholar in mind,” he said.

To learn more about the benefits of 529 plans for retirees, read on: www.forbes.com/sites/brianboswell/2017/02/21/grandparent-529-plans-a-smart-strategy-for-rmds/#387c42394aae.