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Give—and get—a tax-free college savings boost

by on
in FMLA Guidelines,Human Resources

Paying for a child’s college education is a top priority for many middle-age employees. This can be an albatross around your neck, even if you’re a company owner or a high-ranking officer.

Fortunately, your company might be able to lighten the load.

Strategy: Create a private foundation to provide educational grants to employees’ children. So long as you meet certain requirements, the amounts are tax free to the employees.

The program can’t discriminate in favor of your children, but that doesn’t mean your kids can’t qualify as recipients. On the other hand, the IRS will object if you tilt the program in favor of top brass or if it’s used to disguise taxable compensation. Make sure that you level the playing field.

Here’s the whole story: Set up an independent committee to select the scholarship recipients. You can limit the grant applications to employees who have been with the company at least three years, bu...(register to read more)

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