Just made an initial contribution of $10k and plan to save $1000 a month for my 2 kids. That should cover 3 out of 4 years of a college for them. I know some people say colleges will not be around in 10 years, but I’m betting on higher education still being similarly important. I’m more concerned about colleges producing left activists instead of professionals, hopefully there will be sensible options in future.
I’d be moving states in the next 6 months. Would it make sense to move before I start a plan?
You can setup a plan on whatever state you want. Starting asap.
You can actually open an account in a state you don’t even live in. Like I can open a 529 plan in Alaska, it’s considered a good one
Same $1000 per month. It has tax benefits depending on the state.
Unfortunately not in California
Yes! It is hard to overlook the tax advantages: 🪙 Tax-Deferred Growth — Contributions grow free of federal and state income taxes while in the account. 🪙 Tax-Free 529 Withdrawals — No income tax is paid on the growth of your account when withdrawals are used for qualified expenses. 🪙 State Tax Deduction — Deduct your contributions from your taxable income. Check with your state for specific tax benefits. 🪙 Estate Planning & Accelerated Gifting — Reduce your personal taxable estate through accelerated gifting. This benefit is unique to 529 plans.
Not all states have tax deduction
@CVS I mean he has clearly pointed out that
Starting 2024 you can move 529 to Roth IRA incase it’s not used for education
Op you're dumb. Using Google (lol) would have told you that 529 can be used for apprenticeship too. College will be around. Kids come out leftists because they get to be away from their parents, read a lot and think for themselves. You just sound dumb AF.
Ok, Mr Smart. Do the books they read tell them to dye hair purple and shout at people who have different opinions?
Buddy not everyone is doing this. And I have met more conservative people who shout at people they disagree with . You're also not allowing for the fact they are 20 year olds. A lot of 20 year olds think they know everything and then they mature. It's a rite of passage. You should be open minded with your kids and try to understand why they think the way they do. They will not always think like you.
$500 a month, invested over 18 years should be enough for 4 years of college. Public UCs + even a Masters.
I have 10 years for my older one
I super-funded my kids 529 when she was born- put in 120k (or 140k)? Current account has ~300k and kid goes to school in 8 years. If you have the extra cash lying around to do this, I recommend it. Funding college is not something we’ve ever had to worry about. Whatever’s left over will stay in account and get repurposed for grand kids or nieces/nephees i guess? 🤷♂️. Doesn’t matter cuz we don’t really need that money.
Isn’t there a limit of like $40k per year?
Look up “super-funding a 529” - you can make 5 years of contributions in one year, provided you make no other contributions over the next five years. Limit is the gift tax limit, so 14k/year. Times 5 for five years, times 2 for you and spouse. So you can do a one time 140k contribution.
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I’ve been doing $500.00 a month for our toddler for over a year now. Right there with you.