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.

Filter by
Sorted by
Tagged with
8
votes
1answer
777 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-...
4
votes
2answers
756 views

What are the rules on overfunding a 529 college savings account?

I read somewhere that overfunding a 529 account could be subject to taxes and a 10% penalty. Does anyone know how this works? Obviously, it is very difficult to predict the tuition costs 10 or 15 ...
4
votes
1answer
142 views

Can I use a 529 plan to pay student loans and claim both the state 529 deduction and the federal student loan interest deduction?

At first blush, this sounds like it might be double-dipping. But let's take a look at the new IRS rules. As pointed out in another question, in the U.S. we can now use a Qualified Tuition Program (...
13
votes
2answers
4k views

Can I open a 529 retroactively to pay my student loans?

At the end of the year 2019, congress passed the SECURE Act. This act does many things relating to retirement accounts, but Section 302 specifically relates to 529 account expansions. These changes ...
5
votes
1answer
211 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 ...
11
votes
1answer
7k views

Should I use a Roth 401K rather than 529 to save for children's college?

I have set up a 529 for my child's college fund but the more I look at it the less useful it seems compared to alternatives. The 529 is quite restricted -- What if she doesn't go to college? What if ...
12
votes
2answers
4k views

Do I need to start a 529 plan for each child (2 separate plans), or can I just open one 529 plan and let both children use it?

I am looking at starting 529 plans for my kids. My question is whether I need to start one for each of them (2 separate plans), or can I just open 1 and both of them can use it? I would assume the ...
6
votes
2answers
2k views

529 Plans vs Coverdell ESA

I was recently introduced to ESAs (did not know they even existed), and am trying to decide if I want to open an ESA or a 529 account. I was attracted to the ESA initially because it looks like you ...
5
votes
1answer
174 views

Can I personally start and use a 529 college savings account?

I am still a college student, and I am currently working. I am taking out loans for my tuition costs and paying for the rest of my expenses out of pocket (from my job). Yet I was wondering if I could ...
2
votes
2answers
195 views

College Savings: Using available IRA vs establishing a 529 plan?

A financial adviser has recommended to me using my IRA to save for my son's college with the following notion in mind: 529 plans must be used for education, therefore if he doesn't want to attend* or ...
0
votes
1answer
133 views

Can I use a 529 plan to pay a refinanced student loan?

As pointed out in another question, in the U.S. we can now use a Qualified Tuition Program (QTP, e.g. a Section 529 Plan) to pay student loans as a qualified education expense - provided your state ...