The following are some tips and advice on how to ease your tax burden. Homeowners, investors, savers and business owners can all benefit from making changes to their financial strategies to take advantage of the new laws. Select a topic from the listing below for planning tips on specific tax saving strategies. Many of the new tax laws were oriented around savings for education. Other changes are advantageous only if taken advantage of by the individual or their family.
Contributions can come from either parents or grandparents.
Even if the parents are not eligible, the grandparents can contribute. Certainly not enough to pay for college, but, as part of an overall education savings strategy, a worthwhile vehicle. First, if a child has an education IRA funded in a given year, no one can put money into a prepaid-tuition plan for the same child in the same year. Although both methods allow for tax deferral of savings gains, the Education IRA is far more flexible and would be favored under many circumstances. Second, there is also the possibility that the existence of an Education IRA may reduce the financial aid eligibility of the student.