As everyone knows, the cost of higher education goes up each year. While many of us are already familiar with 529 plans and education IRAs, many realize that contributions to these plans, do not generate any tax deduction for the donor.
One way used by some businesses and self employed individuals is to employ their children in the business. That way, they can generate a tax deduction for themselves, and save for the future since the net pay, or a portion of it, can be deposited into a savings or IRA account.
We can help design strategies to help your clients save for your child’s future and manage their tax return.
Written by: Doug Rodrigues