THE MALDEN ADVOCATE – Friday, July 12, 2019 RALLY | from page 1 529 PLAN BENEFITS 5 29 plans are sponsored by state agencies or educational institutions and are available to all taxpayers. A 529 plan is a very good tool to provide for college savings. It also serves an estate planning need. If you are a US resident with a valid social security number or taxpayer identification number, you can establish such a plan. The funds in a 529 plan that accumulate over time are to be used for education-related expenses, such as tuition and books at most accredited colleges and universities. The 529 funds may also be used for public and private primary or secondary schools (i.e. kindergarten through 12th grade). There is, however, a $10,000 cap each year for funds used to pay for public and private primary or secondary schools. A 529 plan has high contribution limits. For example, a parent or grandparent can transfer $75,000 in one calendar year into a 529 plan without using any of his or her lifetime gift tax exemption. This would represent a “tax-free” gift. This is equivalent to five years of tax-free annual gifts of $15,000 per done/year fronted all in year one. The parent or grandparent would then have to wait until the expiration of another five years before additional contributions are made. Therefore, the $75,000 is immediately out of the parent or grandparent’s estate for estate tax purposes and for the Medicaid’s five year look-back period as well. If the parent or grandparent’s spouse joins in on the contribution to the 529 plan, another $75,000 in one calendar year can be contributed, resulting in a total of $150,000 being removed from the taxable estate and placed into the 529 plan. The tax benefit provided by a 529 plan is that the monies grow on a tax-deferred basis and are never taxed so long as the funds are used to pay for educational-related expenses. In Massachusetts, a contributor to such a plan can take a deduction equal to $1,000 if filing as a single taxpayer and $2,000 if filing married jointly. Funds in a 529 plan can be taken back by the parent or grandparent at any time. The beneficiary of the 529 plan can also be changed. For example, if one child ends up not going to college, another child who decides to attend college can then become the beneficiary of the plan. Funds in a 529 plan can remain for a future expenditure as well, such as for graduate school tuition or room and board. Establishing a 529 plan early on and contributing to it on a systematic basis is the best way to begin planning for college education. As you are very much aware, the cost of a private college or university is staggering to say the least. State colleges are very affordable but even the cost of a four year state college can be $100,000 with full room and board and a meal plan. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, registered investment advisor, AICPA Personal Financial Specialist and holds a masters degree in taxation. Everett Aluminum 10 Everett Ave., Everett 617-389-3839 Owned & operated by the Conti family since 1958 • 57 Years! “Same name, phone number & address for family since 1958 • 61 over half a century. We must be doing something right!” •Vinyl Siding •Free Estimates •Carpentry Work •Fully Licensed •Decks •Roofing • Fully Insured • Replacement Windows www.everettaluminum.com Now’s the time to schedule those home improvement projects you’ve been dreaming about all winter! Summer is Here! make sure younger students, including her siblings, have a different experience. “Because race matters, having an administration that’s as diverse as we are matters,” she said. Tsige said she isn’t calling for cuts to the city’s current teaching staff, adding that there are exceptional teachers in the school system. But she and others stressed a critical need for more teachers of color. “That’s a fair request,” said School Committee Vice Chairman Leonard Iovino, who was unable to attend the rally. Iovino said he has always considered certification and experience priorities when it comes to hiring teachers. City leaders have recently been focusing more keenly on the racial disparity between students and teachers. “We not only need goals to change the complexion of our teaching workforce and administration, we need voices to create a culture of openness and inclusion,” said Councillor-at-Large Stephen Winslow, who spoke during the rally. Page 17 Superintendent of Schools John Oteri said recently that part of the problem is that Malden competes with other nearby districts that offer candidates for teaching jobs more opportunities and better pay. But the racial disparity between students and teachers wasn’t the only issue highlighted during the rally. Other students told of being the object of racial slurs and discrimination and of teachers and administrators who turned a blind eye to their complaints. One woman recalled how a teacher told her that her afro looked like “dog hair.” MaldenCORE is calling for a written policy that clearly spells out procedures for investigating and addressing reports of bias and racism. The group is also calling for a diversity committee to hold administrators accountable. And they want all teachers to take part in mandatory anti-racism training. The group is also calling for the reinstatement of Erga Pierrette’s position as a School Adjustment Counselor and that she be allowed to work in a safe environment without fear of repercussions. Pierrette is a founding member of MaldenCORE. The rally also focused on problems with classes and curriculum. One student described feeling hurt and alienated in a class that discouraged any conversation among peers in his native Cantonese. That hurt continued in later grades when he learned about white history and culture but virtually nothing about Asian or African American history or art. MaldenCORE is demanding that the district adopt a curriculum that reflects the backgrounds and cultures of Malden’s students. Malden’s Director of Human Services, Karen Colón Hayes, who arranged for MaldenCORE members to present their demands to Mayor Gary Christenson during the rally, said this week was just the beginning. Over the summer the group plans to hold more events to generate support and momentum. They plan to hold a major rally in August during a district-wide professional development day that includes all teachers and administrators.
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