Multiple College/Savings Accounts?

[Anonymous]

DS godmother wants to set up a custodial account for him with her bank so that it is easier to transfer money directly from her account into a custodial account. What's the advantage (if any) of having multiple savings/college accounts for kids? Also, do you use your child's SSN or your own?

[Anonymous]

My mother set up college accounts for my kids. No advantage or disadvantage other than she has access to the accounts. They are 529s so are in the kids names.

[Anonymous]

In DC, we get a tax break for each of us parents holding an account. DC's grandmother set up anther account that only she contributes to. I think you have to use the child's SSN.

[Anonymous]

We set up 529 for our daughter. Grandparents did as well. They get a tax break and so do we. The only downside that I can see is that we'll have to coordinate with them as the time gets closer to figure out how much is in the various accounts and how to access the one that they set up.

[Anonymous]

Anonymous wrote:We set up 529 for our daughter. Grandparents did as well. They get a tax break and so do we. The only downside that I can see is that we'll have to coordinate with them as the time gets closer to figure out how much is in the various accounts and how to access the one that they set up.

13:05 here. We've done that already. We just had the money sent directly to the school, I just gave the info required to my mother. 529s are surprisingly easy to redeem.

[Anonymous]

I know that states have different limits for how much money can be put into a 529 account. For example, DC's limit is I think $260,000, whereas other states have higher limits. Does DC look at amounts of money established under a child's SS# in a different state when determining whether that child is getting close to that maximum amount in DC?

[Anonymous]

Anonymous wrote:I know that states have different limits for how much money can be put into a 529 account. For example, DC's limit is I think $260,000, whereas other states have higher limits. Does DC look at amounts of money established under a child's SS# in a different state when determining whether that child is getting close to that maximum amount in DC?

I don't know but I know I personally stopped at around $200k because I didn't want to overinvest in the 529 given the restrictions. I left some money in an UGMA mutual fund account we opened years ago. At $200k we are close to fully funded for college (DC1 is in college now at $55k/year) and we will use the mutual fund for graduate school if that's a path, or just as a "gift' if not. I suppose if you know you want to pay for college and grad school and are 100% sure your DC will go to grad school then having a higher balance makes sense. I didn't have that confidence.

[Anonymous]

OP Here. Godmother wants to buy stocks and ETFs but she needs SS# versus savings bonds where she can use hers or mine. Am I the only one weary about giving it out because of the risk of fraud and other credit offers, etc.

[Anonymous]

Anonymous wrote:OP Here. Godmother wants to buy stocks and ETFs but she needs SS# versus savings bonds where she can use hers or mine. Am I the only one weary about giving it out because of the risk of fraud and other credit offers, etc.

huh, we have to put it on so much paperwork, I doubt one more person having it is going to tip the scales.

And if you are afraid of what your family/friend might do with iy...well, you have bigger problems.