Does the US Govt provide a 529 in their benefits?
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Anonymous
| I am wondering if the US govt has this in their benefits package to save money for your kids for college? Or is this something you have to do on your own? I am specifically looking for a plan that will allow my child to go to any school or maybe just the ones in VA. I am VA resident. thanks in advance! |
Anonymous
| Are you talking about the benefits package for Federal employees? If so, then no. But you can always open your own VA529 plan. |
Anonymous
yes I was talking about the US govt benefits package. I thought maybe a benefit would to be put money into it tax free (like a 401K)? I guess not. So I have to open my own? Can anyone recommend a good one to open for VA state schools? |
Anonymous
| VA529 offers several plans -- check them out at http://www.virginia529.com/. |
Anonymous
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You use after tax dollars to fund 529s but the income grows tax free. They are state by state and some states let you deduct your contributions to the 529 of your state's plan from your STATE (not fed) income taxes. Very simple to set up, you aren't limited to your state's plan (unless you want the state tax deduction), and you can make automatic contributions from your checking account.
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Anonymous
| How do I know where to begin to even LOOK at plans? There are so many. I am totally overwhelmed. |
Anonymous
| Federal workers can arrange to have part of their paychecks deposited in a 529 account. Just like you can arrange to have part of your paycheck deposited at one bank and part at another bank. But the government does not contribute, or make matching contributions, to a 529 account in the same way it does for the TSP. |
Anonymous
If you are in VA, just go with the VA plan. There is only one per state. Some people look at other states plans but it is better to just get started on one than to be paralyzed by the options. You can sign up on line. You can set up automatic withdrawals or send checks (once you set up the account you should get statements with a set of deposit stubs). |
Anonymous
| I'd look at Virginia's plan -- it's highly rated among the state plans. |
Anonymous
where do I find their plan? When I google I come up with a million plans! |
Anonymous
Is this the official Virginia plan? There are 4 plans in it??! |
Anonymous
Oh my lord, should we do everything for you? The VA plans are pretty easy to understand. |
Anonymous
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Lots of good info here on all the state 529 plans including an option to compare plans. http://www.savingforcollege.com/
In general, you can use any state 529 plan for any college/university. 529s are different than prepaid tuition plans which are state specific, but you will not get the state income tax benefit (if any) for a 529 plan outside your state. |
Anonymous
You're better off looking at a private 529 (versus the state government virginia 529). The fees are much higher and the rates of return lower. I like Vangaurd becuase of lower expense fees, but there are others. |
Anonymous
www.savingforcollege.com is a good place to start. but if you're in VA, it's considered one of the better plans in the country. If you're looking for something like an employer match, that's not going to happen. |