Overfunded 529? What to do with the money?
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Anonymous
| We aren’t there yet but it looks like we won’t need all of the 529 funds set aside for dc (2 dc). I’ve already moved money as needed between my two children, but it still looks like we will have extra. What can be done? |
Anonymous
| Save it for the grandchildren |
Anonymous
| 35k can be moved into kids Roth IRA (once they're making enough money to do that ) |
Anonymous
|
1) pay for grad school
2) convert to Roth for each kid 3) switch to another beneficiary (niece, nephew, etc) 4) hang onto it and let it grow tax-free to be reassigned to grandkids eventually 5) cash it out, pay the taxes & penalty, and buy yourself something pretty. |
Anonymous
| Omg you all are the best! Thanks!! |
Anonymous
| Just curious: How much did you save in the 529? Depending on where my kid goes to school and if any scholarships pop up, I could be in the same boat. |
Anonymous
NP - We have 200K. We'll sit on it for grandkids (God willing). By then college will most likely be 200k a year anyway so they'll need all the help they can get. 
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Anonymous
200k. |
Anonymous
Did your kid land an awesome scholarship? |
Anonymous
| ROTH ROTH ROTH!! |
Anonymous
| If they receive a scholarship you can remove that much money penalty free. |
Anonymous
+1. FWIW, DC#1 has college tuition room and board fees at $88K this year. By the time DC graduates, I would not be surprised if we use $400K in the 529 for qualified undergraduate expenses. |
Anonymous
Some scholarship money, yes. And we also encouraged schools that weren’t 85k+ a year. To me, that was unacceptable. I went to one of those schools that is now 90k or so a year, as did DH, and we both felt like it wouldn’t be worth the $ |
Anonymous
Interesting. Any type of scholarship? |