How much to fund 529?

[Anonymous]

Quick question - would love some advice.

Two kids. Both in high school - one is a junior, one is a freshman. Their Virginia 529s are funded at about $200k each. Not sure if they will go to state schools or private. Does it make sense to keep putting money in at this point, or do we risk overfunding?

[Anonymous]

We stopped as we'll tap into retirement or savings.

[Anonymous]

Anonymous wrote:Quick question - would love some advice.

Two kids. Both in high school - one is a junior, one is a freshman. Their Virginia 529s are funded at about $200k each. Not sure if they will go to state schools or private. Does it make sense to keep putting money in at this point, or do we risk overfunding?

(Most likely) that won't be enough. With Roth contribution option, you don't have to be too concerned about overfunding.

[Anonymous]

I would not overfund.

[Anonymous]

We stopped adding to 529s once kids had $200k. Shifted that savings to taxable accounts, as it's more flexible. If kids do need more, that money can still be used for education. If kids don't need more, that money is available for anything.

First kid got lots of merit and will have 529 $ leftover after BA, in excess of Roth limit. Glad we didn't lock more into 529.

Reminder to check your distributions and timelines for use given potential for market uncertainty.

[Anonymous]

Correct me if I’m wrong but can’t funds also be used for graduate school or even transferee to future grandchildren?

[Anonymous]

We stopped there, but like a PP we kept putting money away with the intent that it could be used for college if needed - we just saved it in a more flexible account. That way, if it isn't needed for college, we could use it to buy them a car or give it to them for a down payment at some point.

Yes, excess funds can be used for grad school ... but if DC doesn't go to grad school, we still wanted the money to benefit them in their 20s when you can really use it as a boost to get started in life, not put it away for another generation. If there's enough money to do both, you might as well, but we are not in that position.

[Anonymous]

I wouldnt fund additional. Both of the VA funds for those age groups are largely out of the stock market at this point.

[Anonymous]

That much money should never be in a restricted account. The time wasted trying to figure out where it needs to go is not free.
The time it's not in non-restricted account growing without fees, is money lost.
Kids never learned to grow the money and neither did you. 529 did it for you with lower return.

[Anonymous]

Anonymous wrote:We stopped there, but like a PP we kept putting money away with the intent that it could be used for college if needed - we just saved it in a more flexible account. That way, if it isn't needed for college, we could use it to buy them a car or give it to them for a down payment at some point.

Yes, excess funds can be used for grad school ... but if DC doesn't go to grad school, we still wanted the money to benefit them in their 20s when you can really use it as a boost to get started in life, not put it away for another generation. If there's enough money to do both, you might as well, but we are not in that position.

Same here

[Anonymous]

Anonymous wrote:That much money should never be in a restricted account. The time wasted trying to figure out where it needs to go is not free.
The time it's not in non-restricted account growing without fees, is money lost.
Kids never learned to grow the money and neither did you. 529 did it for you with lower return.

Depends on what you did. American funds are solid. No lower return.

[Anonymous]

A lot of this depends on how much money you have. If you have a lot then overfund. Money will pay for all of your grandchildren’s college plus grad school for kids. This is not I place of other money for kids and grandkids but in addition to.

If that is not you then I agree 200k is good.

In Virginia you do not have to be in a specific vehicle. You have a number of funds from a quite good fund company. Others may argue but the fees are good.

[Anonymous]

Stop funding. If you need additional money for tuition you can funnel the money thru the 529 to get the state tax benefit - can pay tuition the next day without penalty.

[Anonymous]

Now I understand why colleges will NEVER lower tuition because you have people with 1/2 million saved and eager to spend it.

I just hope these kids whose parents spent this fortune don't end up driving for Uber or as baristas

[Anonymous]

Anonymous wrote:Correct me if I’m wrong but can’t funds also be used for graduate school or even transferee to future grandchildren?

Yes and yes.