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littleme2
07-16-2006, 08:33 PM
Hi, I have a 3yo and 17 mo old. They are the first grandkids on both sides of the family. My SIL and BIL want to contribute to the children's future.

What are the options out there? Could they contribute to a 529 plan that I opened up for them?

Thanks.

Meetu

Momof3Labs
07-16-2006, 08:55 PM
Yes, or they can open up their own 529 plan for the kids. My kids each have two 529 plans - one that we contribute to and I control, and one that my parents contribute to and control.

Momof3Labs
07-16-2006, 08:55 PM
Yes, or they can open up their own 529 plan for the kids. My kids each have two 529 plans - one that we contribute to and I control, and one that my parents contribute to and control.

emilys_mom
07-16-2006, 09:18 PM
We have both a 529 and mutual fund that grandparents contribute to. I let them choose where to put it.

emilys_mom
07-16-2006, 09:18 PM
We have both a 529 and mutual fund that grandparents contribute to. I let them choose where to put it.

writermama
07-17-2006, 08:17 AM
Depending on the state they live in, they also may be able to take a state tax deduction for opening and contributing to a 529 in your child's name. They retain control of the account and could take money out in an emergency (and be responsible for any associated tax penalty).

I think it has to be a special kind of 529 offered by the state, not to be confused with the prepaid college tuition plans that many states now offer.

BaileyBea
07-17-2006, 08:57 AM
Savings Bonds as well. I no longer buy my best-friend's DS a b-day gift. I just send a savings bond. It's so much easier that way. He has every toy already. His Mom is a clothes horse. ;-)

dules
07-17-2006, 02:49 PM
They can also sign up for UPromise, which allows a percentage of spending to go to your kids' accounts automatically. You set up and control the money in the UPromise account and can choose from many 539 plans to invest it. You can then contribute to the 529s directly.

If you can get your family on board with this (registering their grocery cards, gas cards, etc.) it can really add up.

Best,
Mary