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.

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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 ...
18
votes
4answers
829 views

529 College Savings Worth It?

Is the 529 college savings plan a good idea, or are there better ways to save for my child's college tuition? My children are 5 and 3.
12
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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 ...
12
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2answers
880 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 ...
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 ...
10
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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 ...
10
votes
1answer
719 views

How to create a college savings account for a kid without his mom being able to tap into it?

I am divorced with 2 kids. My mom wants to setup a college savings account of some type for my older kid. Last time she did this, she used my kid's SSN and deposited some money. I do not know what ...
10
votes
1answer
215 views

Investment fund for your child's education?

I have two young children that I am hoping will follow in my footsteps and choose to go to college some day. How do I go about setting up some type of an investment fund for them? I've heard there are ...
9
votes
2answers
816 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 ...
8
votes
1answer
734 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-...
7
votes
2answers
417 views

Can I start a 529 plan for a child before the child is born?

A recent question got me wondering about this one: Conventional wisdom says "It's never too early to start saving for your kid's college education." But a 529 plan is taken out for a specific person. ...
7
votes
2answers
146 views

College Planning specialists

I went to a 'free' seminar tonight regarding college planning, how to get the most financial aid possible, etc. It turned out to be a financial planner who specializes in college financial planning. ...
6
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3answers
3k views

Saving for niece's education: Roth vs 529 vs something else?

I am considering starting an account to help fund my girlfriend's niece's education. I am looking at contributing a small amount each month. I would also like to maintain control of the money and be ...
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 ...
6
votes
1answer
604 views

Long term investing on behalf of newborn

I have some gifts from friends and family for my newborn daughter. I would like to invest these but I don't know what is the best way. 529 plans spring to mind but I don't know what the educational ...
6
votes
1answer
120 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
4answers
5k views

529 (college saving) account for multiple kids

I have a 529 account for my 3-year-old. We just discovered we're expecting another baby. Is it better to open a new 529 for the new baby or just keep contributing to one and then split it later on?
5
votes
2answers
608 views

Can a parent open a 529 for a minor?

Can a parent open a 529 on behalf of their minor-age kid, with the kid as beneficiary? Note: I am not asking about an adult opening a 529 (on their own behalf) and naming their kid as a ...
5
votes
2answers
147 views

In state 529 plan, out of state college?

Do you have to open a 529 plan for the state that you live in? and if you do, can your child go to college in any state and still use the money saved?
5
votes
1answer
206 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 ...
5
votes
2answers
2k views

How do (United States) 529 college savings plans work for attending college in another country?

I've been looking into 529 plans for my son (3 yrs old) but he has dual citizenship (US and Canadian). It is possible that he might attend college in Canada. I've look around for information on ...
5
votes
1answer
251 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 ...
5
votes
2answers
246 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 ...
5
votes
1answer
5k views

Can I convert my 529 college savings plan to a Coverdell ESA?

Can I convert my 529 college savings plan to a Coverdell ESA, or am I stuck with my 529 plan?
5
votes
1answer
137 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 ...
5
votes
1answer
416 views

Can I roll a College 529 education savings plan into a prepaid tuition plan?

I currently have college savings in a 529 plan (New Hampshire). Recently, Texas started the Texas Tuition Promise Fund which is a prepaid college savings plan. I would like to roll the money I have ...
5
votes
1answer
170 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 ...
5
votes
2answers
406 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. ...
4
votes
2answers
747 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
3answers
220 views

Is there any “Personal” Finance app that allows 2 administrators?

I'm an advocate of marriage meaning together in everything. Sometimes even work. But i've had some trouble finding a "Personal" finance app that would allow me to make shared budgeting and allow ...
4
votes
2answers
139 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 ...
4
votes
1answer
74 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 ...
4
votes
1answer
138 views

Saving for College via Upromise, ideal 529 plan?

So I have a upromise account, had one for quite a while. I have some money sitting there now and I need to get it transferred out. I'm thinking a 529 plan, and when I go to set it up, theres a long ...
4
votes
1answer
317 views

Tax advantages of using 529 plans to save for child's education?

I have been looking into 529 plans for my son, and my primary banking and financial institution offers a 529, but their 529 is not as high performing as some other likes Vanguard, T Rowe, or State ...
4
votes
1answer
75 views

Are contributions to a non-dependent's 529 account in MN tax deductible?

(Minnesota) If I contribute to the 529 account of a friend or relative who is not my dependent, can I still claim the 529 tax deduction or tax credit?
4
votes
1answer
174 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'...
4
votes
1answer
99 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 ...
4
votes
1answer
161 views

What should I consider when opening a 529 for someone who is not my dependent?

I have some money languishing in a CD. I rigged the baby pool when my "nephew" [best friends son] was born and set my ill gotten gains aside for his education. I would like to open a 529 for him. I ...
4
votes
1answer
627 views

Can I use 529 plan funds to pay for a CLEP test? How about CLEP test preparation materials?

Can I use 529 funds to pay for a CLEP test? How about CLEP test preparation materials? Title pretty much says it all.
4
votes
3answers
3k 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 ...
4
votes
1answer
131 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 ...
4
votes
1answer
84 views

Are there two layers of fees in a 529 “portfolio”?

I'm looking specifically at this 529 plan Fidelity Intermediate Bond Portfolio, which is invested exclusively in this Fidelity Intermediate Bond Fund - Class I. The portfolio lists a 1.64% Gross ...
3
votes
2answers
81 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.
3
votes
2answers
199 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? ...
3
votes
2answers
723 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 ...
3
votes
2answers
207 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
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 ...
3
votes
1answer
436 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 ...
3
votes
2answers
205 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. ...
3
votes
1answer
50 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, ...