Title: Transform Eleanor's $50,000 IRA Inheritance into a $120,000 Grandchild College Fund Tagline: Turning $50,000 of Inherited IRA Funds into a $120,000 College Fund for Grandchildren: A 529 Plan Strategy Problem: Eleanor, a recently widowed 68-year-old, inherited $1.8 million in a Traditional IRA from her late husband. While financially secure, she wants to use a portion of the inheritance to create a lasting legacy for her three grandchildren's education. She's unsure how best to allocate $50,000 of the IRA inheritance specifically for this purpose, considering the tax implications and long-term growth potential. She also worries about the complexities of early withdrawals from the IRA and the potential impact on her retirement income. Solution: By strategically allocating $50,000 of Eleanor's IRA inheritance to a 529 plan, she can leverage tax-advantaged growth to potentially double the initial investment over a period of 15 years. Using the 529 College Savings Plan Calculator, we can project the future value of the fund based on different contribution schedules and investment growth rates. The calculator helps her visualize the impact of tax-free compounding and allows her to make informed decisions about funding her grandchildren's education. ROI: Eleanor could see her initial $50,000 contribution grow to approximately $120,000 over 15 years, assuming a 5% average annual return within the 529 plan. This represents a $70,000 gain. This assumes she tithes 10% of the distribution to her local church so that she will pay less in taxes on the inherited IRA. The calculator demonstrates the power of long-term, tax-advantaged investing and provides a clear path toward achieving her philanthropic goals. Description: Maximize your legacy by gifting to future generations. This calculator shows how to transform a portion of an inherited IRA into a tax-advantaged 529 college fund for your grandchildren, potentially doubling your initial investment through compound growth. Plan for their future while minimizing your tax burden. Category: Client Service