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Investing/Strategies / Retirement Investing
|Subject: Re: Professional management||Date: 7/11/2011 8:26 PM|
|Author: JAFO31||Number: 69270 of 77550|
StockGoddess: So far all Edward Jones manages is two Roths and two 529 accounts. The 529's are with a state-sponsered fund, of course, so it's basically the Roths. Although she helped me decide how aggressive I wanted the 529s to be invested.
I've been with EJ for about a year. I've spent all of $120. I think it was worth it, though because I learned about a better performing 529 with a tax break (I'll get a $10K deduction off state taxes next year and the following 4 years as I move the maximum each year). $50K in tax breaks."
What is the $10k limit of which you speak?
Annual gift tax exclusion per person has been $11,000 in 2002-2005, $12,000 in 2006-2008, and $13,000 on or after January 1, 2009.
Thus, federal tax law would allow larger contributions without federal gift tax consequences.
Also, federal tax law allows for a 5-year acceleration for lump sum gifts. So you are allowed "to average gifts over $13,000 per beneficiary ($26,000 for married couples) over a five year period without incurring federal gift tax. So an individual can contribute up to $65,000 per beneficiary in one year and a couple up to $130,000 per beneficiary without incurring gift tax."
Nonetheless, I am glad you satisfied with your EJ advisor.
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