1 Any 529 plan withdrawals not used to pay qualified education expenses are subject to penalties and taxes.

2 https://www.savingforcolege.com/article/how-to-transfer-529-plan-funds-to-a-sibling

3 https://www.savingforcollege.com/compare_529_plans/index.php?plan_question_ids%5B%5D=308&plan_question_ids%5B%5D=387&mode=Compare&plan_type_id=&page=compare_plan_questions

4 Any excess contributions made to a 529 plan with a front-loaded gift will be returned to the account owner's estate if he or she dies within the 5-year period. See https://www.savingforcollege.com/article/how-much-can-you-contribute-to-a-529-plan

5 Under the 2017 Tax Cuts and Jobs Act bill, the first $1,100 of a child's income is tax-free, the next $1,100 is taxed at 10%, and the amount above $2,200 is taxed at the same rate as income from trusts which starts at 24% then increases to 35% for income over $9,300 and 37% for income over $12,750.

The opinions expressed and information contained in any article published in the Vault are given in good faith and considered reliable. However, such opinions and information are subject to change without notice and are provided only as of the date issued. Neither Boston Private, an SVB Company nor its affiliates warrant the completeness or accuracy of such information. Any third-party opinion is solely the opinion of its author and does not necessarily reflect the opinion of Boston Private or its affiliates. The materials on this website are for informational purposes only and do not take into account your particular investment objective, financial situation or need. Since each client’s situation is unique, you should consult your financial advisor and/or tax planning professional before acting on any information provided herein.