DC residents: do you use DC's 529 program, or another state's? Why?

[Anonymous]

We plan to live in DC for at least three more years. We're planning to set up DC 529 plans for our baby twins. Any reason to consider using another state's plan instead? DC fees seem a little higher than other states', but as DC residents we'll get the tax break here. Is there anything I'm missing/should consider?

[Anonymous]

The relevant calculation is 20 years of higher annual fees compared to your dc tax rate times up to 8000 dollars.

[Anonymous]

We use DC 's for the tax break but also use another state for the better rates (VA).

[Anonymous]

Being able to deduct means a - what's the rate now? - 8, 9% savings. The SP500 fund has pretty low expenses.

[Anonymous]

As trivial as it may seem, DC's 529 does not allow you to "self-manage" and monitor. Yes, you get statements, but you are unable to manage an online account as is the case with some other states. We opted to do both DC for the tax benefits and another state, that will allow others to make online contrtibutions to DC's account...like grandparents, aunts and uncles who want to give $$ towards school.

[Anonymous]

We do DC up to the tax break, then NY for the rest.

[Anonymous]

We also do DC up to the tax break, then use Utah's. Once you move, you could roll it over into another account so you don't have to pay the fees.

[Anonymous]

You can make contributions into the DC 529 and take the tax break, and then move the money to a different account after two years.

That's what we do - put it into the 529, and then after two years take it out and put it into a Utah 529. That way we get the DC tax break and the low Utah fees.

[Anonymous]

Anonymous wrote:You can make contributions into the DC 529 and take the tax break, and then move the money to a different account after two years.

That's what we do - put it into the 529, and then after two years take it out and put it into a Utah 529. That way we get the DC tax break and the low Utah fees.

Wait, so this year you're taking out 2012 money from the DC plan and moving it to Utah's ? But still contributing to DC's for your 2014 contribution? Yes?

We do use DC's and I know it's not the lowest but I think I read online somewhere it was worth it, due to the tax break.

[Anonymous]

Utah's plan solely. Don't care about the tax break, only performance/yield.