I would recommend establishing two accounts instead of combining it
all into one. You always have the ability to transfer the balances
back and forth between each child, and you will avoid hitting account
maximums (which are north of $250K, usually not an issue) and account
contribution limits per child.


Based on the fact that the majority of America is not adequately
funding their children's educations, and the fact that education is a
HUGE hot button for political campaigns and re-elections, I would say
that the current tax-treatment of 529's will continue status-quo
indefinitely. However, the law is scheduled to sunset in 2010, so it
will require the passing of new legislation to continue the tax
treatment. This will occur.

Wooglin






sepost[at]insightbb.com (Scott Post) wrote in message news:<QVmhb.441565$2x.156364[at]rwcrnsc52.ops.asp.att.net> ...
- quote -

The main advantage to having a 529 for each child is the maximum you put
into each plan.

The greatest risk down the road to 529 plans is how the tax free withdrawals
are handled.


"Scott Post" <sepost[at]insightbb.com> wrote in message
news:QVmhb.441565$2x.156364[at]rwcrnsc52.ops.asp.att.net...
- quote -

We currently have a 529B for our daughter who will start college in
10 years. It's on track to fully fund 4 years of college. Our son
will start college in 13 years. My first inclination was to increase
our contribution to my daughter's 529B to cover both the kids, knowing
that I could transfer the leftover to our son. Is there any advantage
to having only one 529B for two kids? If so, should it list the older
or younger child as the beneficiary? How about having separate plans
for each of the children? Does either way offer an advantage in terms of
financial aid calculations?

The second part of my question is how much to save. We can comfortably
save for the full cost of both childrens' educations. The only problem
with this is if one or both of them receives any financial aid I'd be
hit with taxes + the 10% penalty on the leftover. Is there some way
to estimate the likely financial aid so far in advance? Is there a
rule of thumb for what percentage of the expected costs one should
save in a 529B?

I'm also curious what the general feeling is on the likelihood that the
tax advantage of the 529B will be renewed after 2010? (anyone got a
crystal ball?)

Thanks.
--
Scott Post sepost[at]insightbb.com http://home.insightbb.com/~sepost/