Who should own 529 Educational Savings Account?

When considering a college student's eligibility for financial aid, who owns their 529 account makes a difference. Sarah Mouser, writing for Advisor Perspectives explains.

"Parent-owned 529 plans are treated differently than grandparent-owned 529 plans when applying for financial aid and completing the free application for student aid (FAFSA)."

"When a 529 plan is owned by a parent or student, distributions are ignored. But when distributions from a 529 plan occur from an account owned by a grandparent or other relative, it is considered untaxed student income, which is important because income carries a much more significant impact on aid eligibility than assets. This income can reduce eligibility for need-based aid by as much as half of the withdrawal."

"When completing the FAFSA, there is a two-year “look-back” period. For families filing the FAFSA in fall 2020, they will be completing this form using 2018 tax data. For a student attending a four-year university, grandparent-owned 529 plan distributions used to pay for expenses in their first few years of college will impact FAFSA filings for their later years."

Get complete details at:
https://www.advisorperspectives.com/articles/2020/05/19/who-should-be-the-owner-of-a-529-plan

Health Savings Account limits for 2021

Participants in high-deductible health plans (HDHP) can contribute to tax-advantaged Health Savings Accounts.
"For 2021, the annual limit on deductible contributions is $3,600 for individuals with self-only coverage under an HDHP (a $50 increase from 2020) and $7,200 for family coverage (a $100 increase from 2020)."
"For 2021, the lower limit on the annual deductible for an HDHP is $1,400 for self-only coverage and $2,800 for family coverage, both unchanged from 2020. The upper limit for out-of-pocket expenses is $7,000 for self-only coverage and $14,000 for family coverage, both increased from 2020."

For more info on the tax advantages of HSAs search this blog for "health savings accounts."
Source:

HSA contribution limits increase for 2021

By Sally P. Schreiber, J.D.
Journal of Accountancy 

May 20, 2020

https://www.journalofaccountancy.com/news/2020/may/hsa-contribution-limits-2021.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=21May2020

Lost Your Health Insurance? Check out Affordable Care Act Coverage

As unemployment continues to skyrocket due to COVID-19, a new analysis shows that more than 20 million people losing job-based insurance could get a tax credit on the Affordable Care Act’s insurance exchanges.

But nearly 6 million people will not be eligible for such credits and must pay the full cost of coverage, according to the analysis from the Kaiser Family Foundation released Wednesday.

A Kaiser Family Foundation analysis found that more than 20 million people who are losing employer-sponsored health coverage after losing their jobs could qualify for tax credits under the Affordable Care Act. Over 8 million could get an ACA plan through a marketplace and 12.7 million could get their plans via Medicaid, according to the analysis, based on unemployment claims filed March 1 to May 2.

Details at: https://www.fiercehealthcare.com/payer/kff-more-than-20m-newly-unemployed-could-qualify-for-aca-tax-credits

Got a will? Here are 11 more end-of-life documents you may need

"Anyone remember the death rate in the United States? It's... one per person. 

Nobody is getting out of here alive. We never know when death will happen, just that it will," Amy Florian explained to a group of financial professionals. 

In these days of coronavirus, the need for detailed instructions for your financial and digital affairs is timely. 

Kelli B. Grant explains:

1. a living will: dictates what medical treatments you do and don't want in different circumstances.

2. POLST: Physician orders for life sustaining treatment,

3. Power of attorney for Healthcare/Healthcare proxy.

4. Durable power of attorney: names the person to pay bills and make financial decisions on your behalf. 

5. DNR/DNI orders: do not resuscitate/do not intubate.

6. Diminishing capacity letters.

7. Organ donor designation.
8. Life insurance
9. Personal property memorandum to be included with a "letter of last instruction" 
10. Digital assets memorandum: "Specify in your will who you want to own or have access to your digital assets and accounts like social media and email."
11. A list of where important documents and items are kept

Get the details at:
https://www.cnbc.com/2017/11/15/12-financial-planning-documents-to-handle-health-end-of-life-care.html