DC 529 is not FDIC insured - shall I still pay this game?

[Anonymous]

I realized I did not give to our 529 in 2024 (I usually do a lump sum of $4K per kid for the tax benefit) - I was just about to do it for this year when I read on the website that it is not FDIC insured. I used to gloss over this stuff, but with the current state of affairs, I'm now thinking, should I hold off?? Anyone else thinking the same? Safer to invest elsewhere perhaps? Or not?

[Anonymous]

Investments accounts are never FDIC insured.

[Anonymous]

Any investment is not FDIC insured - 529, 401k, brokerage. You could put in a money market at a bank, but you would t get any tax benefits on the initial investment or the growth.

If you are close to using it and really scared that your 529 investment firm might fail, then I guess maybe it is worth it? But generally the tax benefits are worth it in my opinion.

[Anonymous]

Get the tax deduction. Put it in bonds if the kid is close to college. Otherwise take advantage of the dip.

[Anonymous]

Anonymous wrote:Investments accounts are never FDIC insured.

This. Your IRA isn’t FDIC for the same reason. They are both likely protected by SIPC though (which isn’t an apples comparison).

[Anonymous]

OP here - thanks, all!!!!