https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Tue, 19 May 2026 18:31:59 +0000 https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2291260 Tue, 15 Sep 2015 10:05:28 +0000 Mrs D 2291260@https://boards.hellobee.com/ <p>Thanks for the input everyone! I think I made it very clear that I am extremely appreciative of anything they decide to contribute to our LO's education. It was only since use of funds from a 529 plan is restricted without penalty that I cared to be sure we were investing consciously.</p> <p>If they had decided to set up a regular trust fund for LOs without any of the issues that come with restricted use funds I would not have a care in the world what they contribute - however I would request that down the road some discussion be had over who else is on the account because I am not sure I would want DD or LO2 having access to a significant amount of cash without any oversight if god forbid my ILs are gone before they reach age.</p> <p>Thanks for the input. I am going to mention to MIL that we are plotting our savings plans and would like to contribute appropriately. I'm going to then ask if she would mind sharing their contribution plans - if she is vague and seems to not want to share I will not push any further. To date, no one has spoken to MIL about this - only FIL - who although she is not the breadwinner she does make most of the financial decisions. FIL's comment of "not that much" could be his lazy response, his own best guess, or perhaps he has no clue so he doesnt want to influence one way or the other. For all I know, MIL could be absolutely happy to discuss it with me!</p> <p>I appreciate all the input! </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2291197 Tue, 15 Sep 2015 09:12:03 +0000 sunny 2291197@https://boards.hellobee.com/ <p>I wouldn't contribute my own funds to that account. A lot can change over the years and your ILs can change the beneficiary at any time, cutting you off from the money that was meant for your LOs (perhaps they now have other grandchildren, falling out, etc.) </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2291188 Tue, 15 Sep 2015 09:07:49 +0000 2PeasinaPod 2291188@https://boards.hellobee.com/ <p>@Truth Bombs: Couldn't agree with you more. </p> <p>I feel like grandparents can start a 529 plan without telling the parents that they've done so. Your MIL was nice enough to tell you, but it's not necessary for her to inform you of how much she's contributing to this plan. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2291164 Tue, 15 Sep 2015 08:56:35 +0000 Mrs. Lemon-Lime 2291164@https://boards.hellobee.com/ <p>@Truth Bombs: yesterday when this thread sprang up I shared it with my husband and he had exactly your sentiments. Don't ask. What the grands do is extra and shouldn't factor in to what the parents do as primary college savings. </p> <p>We won't have this happy problem, but I'd imagine just knowing there was something more for my kids would be enough. Wether that turned out to be enough to cover books for a year or pay for the extra expense of tuition abroad for a semester or more. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2291103 Tue, 15 Sep 2015 08:18:29 +0000 BandDmommy 2291103@https://boards.hellobee.com/ <p>@Truth Bombs: agree </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2291077 Tue, 15 Sep 2015 07:54:03 +0000 Truth Bombs 2291077@https://boards.hellobee.com/ <p>I really wouldn't ask. If your in-laws have gone out of their way not to give details, I really don't think it's right to ask. If the average in state public school tuition is 10K/year and we assume a 6% rate of inflation (average educational inflation) over the next 18 years you're looking at about $28,500/year by the time your LO goes to college, working out to $114,000 for four year of school. If your in-laws are contributing $2k/year (the high end of your guess) and earning a 10% rate of return (a generous assumption) then the account still only grows to about $91,000, leaving a significant shortfall where you and your husband's account will be needed. Also, you say your LO can't use money FROM YOU to go above the cost of public schooling. But you can't put that restriction on money from their grandparents. So if your LO wants to go to Harvard, it'll be a good thing their grandparents contributed additional funds on their behalf to avoid them having to take out unneccessary loans, etc. I really don't think there's such a thing as too much college savings.... so when you meet with your financial advisor I would come up with the max amount that you and your husband can comfortably contribute, and not factor your in-laws contributions into the equation. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2291059 Tue, 15 Sep 2015 07:30:28 +0000 Mrs D 2291059@https://boards.hellobee.com/ <p>@BandDmommy: @Truth Bombs: I talked to my SIL last night...I had it right but was backwards in how I said it. They "gift" the money to each grandchild every year and put it into a 529 so that the earnings are tax free. So it is a 529 plan - but yes you are right I know the contributions are not "pre-tax". This is why I tell people just because I am a CPA does not mean I am a tax accountant.</p> <p>So - SIL and I decided that I will ask MIL point blank. (normally you would think her own child would be comfortable asking her but they have a very contentious relationship - plus MIL does not agree with how SIL lives financially...so she thinks it may be more well received coming from me). I hope to get a chance this coming weekend - we are meeting with a financial adviser this fall and its information I would like to be able to provide him.</p> <p>@Trailmix: We have agreed we will not pay for private schooling - they will get the public school amount to put towards their tuition - anything above that will be their responsibility. But yes - in theory if we have too much in the account and they choose a more expensive school or grad school they could always use it and pay us back. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290810 Mon, 14 Sep 2015 19:13:05 +0000 Trailmix 2290810@https://boards.hellobee.com/ <p>What if your child doesn't want to go to public school for college? Then tuition would be a lot more. Just something to think about because it seems hard to plan so exactly for something 15+ years away. I honestly probably wouldn't worry too much about it since it's so far down the road and just keep contributing what you normally do to your own accounts. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290766 Mon, 14 Sep 2015 18:09:03 +0000 BandDmommy 2290766@https://boards.hellobee.com/ <p>@Mrs D: are you thinking of a state credit? Some states allow a credit if you contribute to that states 529 plan. There are no federal deductions or credits for deductions to 529 plan. Perhaps they have done tax planning strategy and set up a trust, in that circumstance it would important for them to be on so they can control the money. My parents have trusts set up for tax planning purposes. It's a very popular tax planning strategy. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290752 Mon, 14 Sep 2015 17:38:34 +0000 Truth Bombs 2290752@https://boards.hellobee.com/ <p>@Mrs D: 529s do not reduce the taxable income of the contributor. So I would assume the account is not a 529. So it sounds like whatever account they are using is not going to be SUPER restrictive about having to be used for higher education (529s are the most restrictive from that aspect). Given that information, you really don't need to know how much they are contributing. Because if there is money left over after all your child's college needs are met, then the money can be used to benefit him in another way. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290722 Mon, 14 Sep 2015 16:36:38 +0000 BandDmommy 2290722@https://boards.hellobee.com/ <p>@Mrs D: nope. It can be changed to other beneficiaries. Plus, it can cover higher education costs such as graduate school, medical or law school. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290715 Mon, 14 Sep 2015 16:14:35 +0000 mrs.shinerbock 2290715@https://boards.hellobee.com/ <p>One thing to keep in mind about grandparent-owned 529s: The grandparent-owned 529 account is not reportable on the student’s FAFSA, which is good for aid eligibility the first year. However, any distributions to the student or to the student’s school from a grandparent-owned 529 must be added to student income on the following year’s FAFSA, which can be very bad. The "income" is counted as a higher rate than money in a student- or parent-owned 529 account.</p> <p><a href="http://www.forbes.com/sites/troyonink/2015/05/31/the-truth-about-grandparent-owned-529-college-savings-plans-and-college-aid/" rel="nofollow">http://www.forbes.com/sites/troyonink/2015/05/31/the-truth-about-grandparent-owned-529-college-savings-plans-and-college-aid/</a> </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290707 Mon, 14 Sep 2015 15:49:57 +0000 yoursilverlining 2290707@https://boards.hellobee.com/ <p>Regarding #1, I think it’s a little odd they won’t tell you, but maybe they are not 100% sure yet, and don’t want you banking on one specific amount. That makes sense to me. I personally wouldn’t worry about over contributing, especially since you’ll have multiple LO’s, and especially if you think it may be like 2k a year. Anything they contribute is awesome, don’t get me wrong, but I wouldn’t change or sway my personal savings plans over $2k a year contribution. Honestly, I wouldn’t push them now. I’d wait a few years, and check in. By then, they may have more of a standard contribution figured out, and be more open to talking. </p> <p>#2, it’s your MIL’s money, so I don’t think it’s *that* weird for her to name herself a trustee of the account. I think it would be more reasonable for you or your husband to be named trustee, but at the end of the day, it’s her money. But, it doesn’t sounds like she plans on setting up a 529, or if she does, maybe she doesn’t understand fully how it works? (If she thinks it is “free money” once they go to college?). Maybe just sitting down and talking about what they are looking for – and letting them know what carious options are out there. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290700 Mon, 14 Sep 2015 15:40:14 +0000 Mrs D 2290700@https://boards.hellobee.com/ <p>@Truth Bombs: I guess I do not know. I know it is done for tax purposes to reduce their taxable income. Beyond that - I do not know for sure.</p> <p>@LuLu Mom: this exactly...I feel awkward asking...but I think I just may have to.</p> <p>@Bluebonnet: Yes - you are right I need to just put on my big girl pants and ask! It just feel weird...real weird...and I worry it will come across as money hungry...though I know its not...</p> <p>@Ginabean3: I would LOVE this...maybe step two... </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290698 Mon, 14 Sep 2015 15:37:42 +0000 Truth Bombs 2290698@https://boards.hellobee.com/ <p>@Mrs D: What kind of account is it exactly? Is it definitely a 529? </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290695 Mon, 14 Sep 2015 15:32:58 +0000 Ginabean3 2290695@https://boards.hellobee.com/ <p>Could you ask to see quarterly statements? (Or could DH ask?). My ILs have accounts set up for both of our children and they actually print out and give us quarterly statements so that we can see how the accounts are growing! </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290694 Mon, 14 Sep 2015 15:32:47 +0000 Bluebonnet 2290694@https://boards.hellobee.com/ <p>If you want to know the contribution level, just ask. Tell them you are doing some financial planning and would like to better understand what they have already contributed to LOs 529 plan. </p> <p>I wouldn't be worried about over contribution - especially if LO is 2. A lot of factors could change your ILs contribution rate in the next 16 years (their financial situation, number of grandchildren/amount available to contribute, etc). College costs are increasing at a much higer rate than inflation. Check in again in 10 years and see what the balance is in the account and what college costs look like and then your ILs can stop contributing if it looks like there is too much money in the plan. Also, your LOs might want to go to grad school or a private university - any money above what you were anticipating could be used towards those expenses.</p> <p>FYI - you can change the beneficiary on a 529 plan. So if your ILs have 10 grandchildren, and grandchild #1 gets a full scholarship, they can apply that money to grandchild #10. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290692 Mon, 14 Sep 2015 15:30:15 +0000 LuLu Mom 2290692@https://boards.hellobee.com/ <p>@Mrs D: I can completely relate, my in laws have set up funds for both our girls (they are successful farmers and use it as a way to "get rid" of cash for tax purposes) but we don't know the amount either, and I feel very strange asking since it is DH's parents. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290685 Mon, 14 Sep 2015 15:25:43 +0000 plantains 2290685@https://boards.hellobee.com/ <p>My MIL has a 529 for DD that she has been contributing $500 per month to. She has told us that when the new LO comes round she will set up a second 529 account and then do $300 for each child from then on out.</p> <p>DH and I will have our own 529s and also use Roths to contribute for the kids. There is different weight given to a parent 529 vs a grandparent 529 when determining financial aid, so it is better for you to have your own vehicles for savings vs adding to theirs.</p> <p>Additionally, if there are tax benefits available in your state, you will need to use your own acct to benefit. I would just have DH tell his dad that he needs to run some calculators to see how much of a difference to account for so he needs to have a better handle on how much they are contributing. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290684 Mon, 14 Sep 2015 15:25:36 +0000 Mrs D 2290684@https://boards.hellobee.com/ <p>@catlady: @birdofafeather: Good points...extra money could always be used for grad school if one chose to do so... </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290683 Mon, 14 Sep 2015 15:24:26 +0000 Mrs D 2290683@https://boards.hellobee.com/ <p>@ShootingStar: unfortunately...for anyone who knows my MIL - its not that weird, she is a bit of a control freak... :) Luckily, like I said she is a reasonable person and I dont think she would set unreasonable restrictions. My only fear that I need DH to address is that she will not stipulate which school it can be used at (she is very partial to catholic colleges...and DH and I are indifferent). I just hate for someone to have to pay penalties down the road due to stupid lack of communication...you know? </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290682 Mon, 14 Sep 2015 15:23:55 +0000 birdofafeather 2290682@https://boards.hellobee.com/ <p>@Mrs D: Yeah, but needs change! So I would do the max I could now and reassess because like PPs said, who knows what costs will really look like in 16 years! And she may want to do a JC first or graduate school later so while it's a nice idea to just set aside one amount, your situation will change! </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290679 Mon, 14 Sep 2015 15:21:22 +0000 catlady 2290679@https://boards.hellobee.com/ <p>I would ask for the account information so that you can check the balances over time. It seems crazy for people to give your children thousands of dollars but not let you know how much they are giving. </p> <p>You could also consider separating out your own contributions so that you are putting a portion of it in a fund that is not specifically for education. That is what we are doing, at least. I don't think anyone can predict what higher education (or taxes) will look like in close to 20 years so I'm personally not comfortable putting all my eggs in one basket. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290675 Mon, 14 Sep 2015 15:20:14 +0000 Mrs D 2290675@https://boards.hellobee.com/ <p>@BandDmommy: Do you worry about having too much set aside at the end of the day?</p> <p>@birdofafeather: I guess I was just hoping to take advantage of the tax free earnings as best as possible! We will certainly have additional savings accounts - I just kind of liked the idea of a set cadence $XX every month for each kid until 18... </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290674 Mon, 14 Sep 2015 15:19:18 +0000 ShootingStar 2290674@https://boards.hellobee.com/ <p>I find it weird that they haven't let you know specifically how much they're contributing. When DS was born my parents said they wanted to set up a trust for him for college. They debated a few options and finally decided to contribute yearly instead of a large lump sum all at once. They told me how much they're going to contribute and with which state plan. </p> <p>I don't think it's out of bounds for your DH to ask how much they think they're going to contribute. But I do think your #2 is kind of weird. The pre-tax accounts can only be used for schooling expenses, so the fact that she wants to police that money seems weird to me. Say she decides your LO needs to have a 3.5 GPA. What happens if it drop to 3.0? Or 2.7? Will your LO lose access to that money? What happens to the money then, since it can only be used for education expenses? It's not like she's setting up a general trust fund to be distributed at age 18 or whatever. </p> <p>If they're not going to be cooperative, you may just want to go ahead and save what you can and pretend there is no extra money coming from them. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290672 Mon, 14 Sep 2015 15:16:20 +0000 Mrs D 2290672@https://boards.hellobee.com/ <p>@twodoghouse: They have already set up DDs (she is 2) and MIL made it very clear that they set it up and she remains on the account. (She is nothing if not stubborn - but to her credit she is fair so I dont worry about her wrongly withholding the money). I have told others that I would happily accept contributions but that I have not set up our account yet.</p> <p>Since they are obviously putting in a decent amount over the years I dont feel I could say "our way or the highway"...you know? Since she seems set in her ways on it. (Obviously she has done this with her other grand kids) </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290671 Mon, 14 Sep 2015 15:16:20 +0000 birdofafeather 2290671@https://boards.hellobee.com/ <p>I would do my own accounts but not put it all in education only accounts. Probably some money market or other stocks. You're not going to overdo it in the next 5 years so let it grow to whatever they want and then have your DH ask again in that time and you can reassess the money breakdown at that point. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290670 Mon, 14 Sep 2015 15:16:16 +0000 BandDmommy 2290670@https://boards.hellobee.com/ <p>My parents donate to a 529 and have set up trust funds for our LOs I have no idea their contributions. We are still contributing about $10k a year to each 529. </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290669 Mon, 14 Sep 2015 15:13:49 +0000 twodoghouse 2290669@https://boards.hellobee.com/ <p>@Mrs D: We set up a 529 plan and with that you can invite others to be contributors. My ILs make contributions there and some other family members have asked for the info so they could contribute for the kids' birthday. Maybe you can suggest this to your ILs? </p> https://boards.hellobee.com/topic/college-savingsils-contribution-wwyd#post-2290667 Mon, 14 Sep 2015 15:08:58 +0000 Mrs D 2290667@https://boards.hellobee.com/ <p>So...some background. DH and I plan to pay for 4 full years of public schooling for our children. We will cover tuition, books and living expenses (determined by us) and there will be requirements that must be met (minimum GPA levels, etc).</p> <p>We are very fortunate and my ILs have indicated that they create pre-tax accounts for each of their grandchildren which they contribute to annually. So generous of them, but here are my issues...</p> <p>1) I have indicated to DH many of times that we need to know what their contribution level is. I dont think he understands that pre-tax college savings is penalized if used for purposes other than tuition/etc. So we do need to be careful not to over contribute. I guess at one point he asked his dad who said "its not that much each year"...problem is my FIL is very successful and not that much could really mean $1-2K...over 18 years $18-36K...a large amount of money.</p> <p>2) MIL insists on being on the account. She is a firm believer that a responsible adult needs to be involved to ensure the children do right with the money and "earn" it. I trust she wont be cruel or harsh - and honestly I expect her stipulations wont be any harsher than DH and I. But either way - she does maintain control of their "trust" they set up.</p> <p>My issue is - w/ regard to #1 - how do I find out about their contributions so DH and I dont over contribute? She sets the accounts up with their SSN so they are tied to the children - although I believe you can use it on other children? I dont want to seem nosey or anything but it seems like a valid inquiry to me?! Am I wrong?</p> <p>And with regard to #2...I thought of just contributing to the same fund she contributes to so that (for ex) DD's money is all in one spot and easy. Thoughts given MIL's heavy involvement? </p>