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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: Professional management Date: 7/11/2011 8:26 PM
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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.

http://www.irs.gov/businesses/small/article/0,,id=108139,00....

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."

http://www.finaid.org/savings/529plans.phtml

Nonetheless, I am glad you satisfied with your EJ advisor.

Regards, JAFO
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