Stack Exchange Network

Stack Exchange network consists of 175 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.

Visit Stack Exchange

Questions tagged [529-plan]

for questions that relate to a 529-plan. A 529 plan is a tax-advantaged investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary.

1
vote
1answer
41 views

Colorado 529 withdrawal income tax recapture and AOTC

In Colorado contributions to the state 529 plan are deductible from State income taxes. These income taxes are recaptured if a non qualified withdrawal from the plan is made. My husband (the ...
2
votes
2answers
74 views

Are non-qualified withdrawals from a 529 plan penalized on the original contributions?

My understanding is that early (nonqualified) withdrawals from a 529 plan are penalized at 10%, plus taxed over any capital gains. Does the 10% penalty apply to capital/investment gains only, or to ...
1
vote
2answers
74 views

529 Plan from Fidelity

My son is in 8th grade now. I want to start putting money in a 529. I live in NC and he will almost certainly go to Uni here. In looking at options, contribution to the NC 529 plan don't have any ...
1
vote
1answer
57 views

Can I deduct 529 college savings plan contribution from California income tax as a gift?

When I contribute to a 529 college savings plan, can I deduct the contribution from my California income tax as part of the gift tax exclusion (up to $15000)?
2
votes
1answer
251 views

Can I deposit money into a 529 and withdraw for expenses in the same year?

If I have: Spent $5k in eligible education expenses on January 1st, 2018 Deposited $5k into my 529 for 2018 on December 31st am I able to immediately withdraw that $5k to pay for the educational ...
27
votes
4answers
6k views

Can I start 529 plans for my niece & nephew without my sibling knowing?

If I wanted to start a 529 plan for them now to give to them at the end of their high school career as a surprise to both them and their parents, is it possible to do so? My niece and nephew are both ...
3
votes
1answer
47 views

Can a beneficiary take the tax liability for an unqualified withdrawal from a 529? (not the account holder)

Say there is a 529 account with $30K in it. It is owned by "account holder" who is in the 20% capital gains tax bracket. The "beneficiary" of the 529 is no longer going to school, is not disabled, ...
3
votes
2answers
194 views

Does 529 help with no intention to attend college?

QUESTION: Is it better to make a long-term investment in a 529 account or a post-tax account? Assume the terminal use of funds is not a qualified expense. What is the right way to do this analysis? ...
2
votes
2answers
131 views

How can I roll-over a 401(k) to a different person?

I have a friend who wants to roll-over their 401(k) after recently leaving their employer to an IRA or 529 plan for her grandkids (in their name, or their parents' name) instead of into an IRA in her ...
1
vote
1answer
43 views

Tax deduction for 529 for elementary school tuition

Well I had another question in mind, but my state NC has finally updated the 529 plans to include Elementary and High School. So no my question is, I think I would prefer to use Vanguard or TRowe to ...
1
vote
0answers
42 views

Live in NY but work remotely for a company in Virginia. Which 529 plan can I deduct taxes?

I live in NY and I just started working remotely for a company in Virginia. I will not be moving to Virginia. I've been contributing to my NY 529 plan since I can get a state tax deduction on it. ...
3
votes
2answers
685 views

529 plan distributions, taxes, and the 1099-Q

Our oldest kid started college this fall. We have a 529 plan with her as the beneficiary. We took $9400 out of the account this fall to pay for her tuition. There isn't anything to tax because the ...
2
votes
2answers
94 views

Uniform Gift to Minors Act - Which parent has tax implications?

I am looking to start a college savings fund for my daughter and am debating between the 529 and UGMA. I want to be able to save for her and if her grandparents pay for her college (very possible) or ...
5
votes
2answers
298 views

How much money from a 529 college savings plan can be applied towards rent when a university offers several tiers of accommodation?

I attend university in the United Kingdom but have a 529 college savings plan in the United States. As I understand it, money from this plan can be used to cover my off-campus housing expenses. ...
9
votes
2answers
809 views

How do Roth IRAs compare to Traditional IRAs for college savings?

I have seen some web pages and blog posts about using a Roth IRA instead of a 529 savings account to save for college costs as a way to have more flexibility with the investment and its returns. With ...
2
votes
1answer
167 views

529 College Savings Plans - How flexible is it, and can I withdraw (and pay taxes) if unused? [duplicate]

My US-born daughter has triple citizenship - Brazil, US and UK. We live in Texas and I would like to start saving for her education. My wife and I are also considering sending her to private ...
5
votes
1answer
127 views

529 plan strategy for contributions and withdrawals?

I have a child who is a college-bound high school senior. We live in a high tax state that offers a tax deduction on contributions of up to $10K per year to the state's 529 plan. At this time we ...
3
votes
2answers
197 views

Accounting questions for 529 plan under 2018 GOP tax plan, for private school tuition

I have a single Vanguard 529 plan for two kids, who are four years apart in age. But hey, they go to private school now, and there are tons of gains in the account. What accounting steps are needed. ...
3
votes
1answer
633 views

Foreign grandparents and 529 college saving

I'm an ex-pat living in Ohio with a child that we have set up a 529 college savings account for. My parents from the UK want to contribute to my daughter's future and I'm not sure what the most ...
10
votes
1answer
2k views

Can I use the new tax law to help with private school?

We live in a city that has a very low rated school system, therefore we have been enrolling our 2 children in a private school that costs $12,000 per year per child. This comes with quite a bit of ...
1
vote
1answer
225 views

when computing your MAGI, do 529 contributions come off?

I have the exact same question as this: Do 401K contributions reduce MAGI as it pertains to Roth IRA income limits? Except, instead of 401k, a 529. Essentially, can I use a 529 to reduce my MAGI for ...
2
votes
1answer
51 views

Can I use my (Nevada) 529 plan for graduate, and by extension undergraduate, school applications?

I did some research (procrastinating on my writing) and was wondering if I could utilize funds from a 529 plan in my name to pay for graduate (and potentially undergraduate) school applications. ...
5
votes
1answer
150 views

Can your kids take over your 529 plan and use it for their own kids?

Consider the following situation: There is money remaining in your 529 plan after your children have finished college. Your children now have children of their own. Can you change the beneficiary of ...
4
votes
1answer
73 views

Educational Savings Program vs. Individual Investment Plan

I am trying to figure out what is the best investment option for my daughter's college tuition when she turns 18. We currently have Michigan's education savings program (MESP 529) and we deposit $100 ...
1
vote
2answers
117 views

Making 401(k) and 529 contributions from other investments

My take home pay essentially covers my living expenses, but I am only contributing enough to my 401(k) to get the match from my employer and I am not contributing to a 529 plan for my son. In ...
5
votes
1answer
188 views

529 plan withdrawal penalties

My son is a freshman this year. We live in and he attends school in California. We pulled out the first $ from our Utah 529 plan. I had the money deposited in my account since I paid the ...
1
vote
0answers
45 views

What happens to leftover money in a 529 College Savings Plans? [duplicate]

Assuming a child goes to college and everything is paid from a 529 college savings plan. Once that child graduates and there's leftover money in the savings account, what can be done with that money? ...
3
votes
2answers
79 views

Will it be possible to have 529 plan & use it for myself while doing the Grad Program?

Will it be possible to have 529 plan & use it for myself while doing the Grad Program? My intention is to use the fund for the second or third year of graduation.
4
votes
3answers
2k views

Are 529 earnings state-taxable in California?

Whether contributions to a 529 plan can be deducted from income for state tax purposes has been discussed and is documented in many places. However, I am interested in the California state tax ...
7
votes
1answer
119 views

Scholarship Tuition Reimbursment

I recently received a military scholarship which covers all of my tuition and housing at my university. The military will be back-paying the costs, so the university will send a check that reimburses ...
5
votes
1answer
162 views

Am I better off with NY's 529 plan? (Maryland resident)

Maryland resident here. We'll be opening some 529 plans for our kids (ages 4.5, 2.5, and 1), and I'm wondering how to determine if we're better off with the in-state plan or another state's plan. We'...
8
votes
1answer
624 views

What is a good strategy for an over-funded 529 account?

Given a situation where there is an abundance of funds in a 529 account for the current educational situation, what is a clean strategy for getting the money out with minimal taxation? This over-...
5
votes
1answer
91 views

State tax deduction of 529 account deposits?

My state (Massachusetts) will offer a tax deduction next year for up to $2000 in deposits to a 529 college savings account. I have a credit card which offers 2% cash back. The choices were to have ...
5
votes
2answers
240 views

Savings Account for Newborn--529? Trust?

A close family member is about to have a baby, and several family members are looking for a way to allow gifts to contribute to the child's eventual education. The twist is: if the child decides (for ...
3
votes
1answer
1k views

How much money should a “fully-funded” 529 account contain to pay for a student's education?

What is the maximum, reasonable amount one might put into a 529 college savings account for the benefit of a single future student? 529 accounts have maximum allowed balances between $235k and $400k ...
2
votes
2answers
332 views

College funds - is it too late to open a 529?

We are immigrated parents and our daughter will be going to college in 3 years. What's the best option if we want to start saving for her college education? I would like to have an account with high ...
4
votes
1answer
398 views

529 - Grandparent/Extended Family Contribution - New York State

My first child is due in Mid - April (!!!!). I want to set up a 529 for him and I am curious if grandparents and/or extended family can contribute to it tax free? or is it a tax write off? We live ...
4
votes
1answer
121 views

How to determine if a school is 529 eligible

How can I determine if a particular educational institution is eligible for 529 college savings plans? I found a tool which claims to tell whether schools are eligible but I am not sure if this site ...
1
vote
1answer
276 views

Use a 529 plan to escape taxes of investment property sale

So I have been attempting to devise a way to go back to school in a cost effective manner. I enjoy what I do but I really want to continue learning. Unfortunately, like many on here I am cheap money ...
3
votes
2answers
196 views

What to consider when opening a 529 account

I've got a new baby and am planning on opening a 529 account to begin saving for her education. I know these accounts have state tax incentives but I don't know what to look at when researching them. ...
2
votes
1answer
1k views

Is my 529 contribution tax deductible?

My wife and I recently had our first child, and about the same time I began a new job in New York City. Naturally my wife and I want to start saving for our daughter's education, so we would like to ...
1
vote
2answers
106 views

Clarification on 529 fund

I am more than 30's, having a full time job. I am looking for Part Time Master's Graduation Program which will enhance my career. Can i deposit around 5000 for this year in a 529 fund. Whether this ...
2
votes
3answers
147 views

College savings using plain mutual funds instead of 529 plan?

I have two young children and am thinking about how to best save for their futures. I have read a lot about 529s and mutual funds (index, tax efficient ones) and was trying to get an outside opinion. ...
0
votes
2answers
404 views

Is ScholarShare a legitimate entity for a 529 plan in California?

I am researching a 529 plan for my kids. We are in California. It seems that a lot of links point to ScholarShare plan. Yet, I can't tell whether it is legit or not, mostly because I haven't heard ...
2
votes
1answer
144 views

Does it make sense for me to start a 529 college plan for my kids

My kids are 11 and 15. I've neglected to save any money for college for them, but I want to start now. Given that I am starting out this late, does the 529 college make sense at this stage? If I ...
12
votes
2answers
824 views

How does a tuition insurance payment affect 529 withdrawals?

Qualified college tuition and expenses were paid from a 529 plan in 2014. The school sent a 1098-T and the 529 plan sent a 1099-Q and everything was fine on my 2014 taxes. In 2015 my child has left ...
1
vote
1answer
124 views

Can my contribution to 529 plan vary monthly?

I want to start a 529 plan for my son. I am not sure if monthly contribution has to be fixed or I can increase/reduce my contribution as per my financial situation. E.g. if I lose my job I may decide ...
4
votes
2answers
135 views

Is it possible to use a 529 plan solely for myself, without any educational expenses?

I was setting up an Illinois 529 plan recently. Contributions to the plan are state income tax deductible up to $10,000 per tax payer per year. It got me thinking: What is to stop someone with no ...
0
votes
2answers
120 views

Should I use 529 plan?

My wife is going to get a Master degree in a state university for continue education. She already finished 3 credits. The tuition was just withdrawn from our checking account. We never use 529 plan ...
1
vote
1answer
183 views

Dividends reinvested in a 401k or Coverdell ESA show up on 1099-DIV?

In the USA, I know that dividends reinvested within a 401k, IRA, 529, or Coverdell ESA are not taxable (initially). I was surprised to see them show up on a 1099-DIV form this year from my investment ...