Does anyone else find the fees on the funds in DC's 529 plan troubling?

[Anonymous]

They look much higher than the industry average. Wondering who in DC government negotiated with Calvert. they disnt do a very good job. DC parents are hostage to this arrangement if you want the tax benefit.

[Anonymous]

How high are they in comparison to other states?

[Anonymous]

that's why
i do the vanguard-run 529, and forget the deduction

[Anonymous]

Aren't you allowed to do any state? I'm not he money-guy in our household, but I think we do Alaska and Maine's 529 plans?

[Anonymous]

Anonymous wrote:Aren't you allowed to do any state? I'm not he money-guy in our household, but I think we do Alaska and Maine's 529 plans?

Yes, you are allowed but you forego your state (or territorial in this case) deduction.

In Virginia, the load for College America are roughly equivalent to the deduction itself so it's a wash. The back-end fees are less than industry average, however.

[Anonymous]

We do Maryland for the state tax deduction and we found out last year that each parent can have a 529 for each child. In our case, what we thought was a 5K state tax deduction is now 10K.

[Anonymous]

Anonymous wrote:We do Maryland for the state tax deduction and we found out last year that each parent can have a 529 for each child. In our case, what we thought was a 5K state tax deduction is now 10K.

So that saves you, what, $500 a year in taxes?

[Anonymous]

You can open account in DC, take the state tax deduction, then transfer to another state's 529. I'm a financial advisor and we recommend the Utah plan to many clients.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We do Maryland for the state tax deduction and we found out last year that each parent can have a 529 for each child. In our case, what we thought was a 5K state tax deduction is now 10K.[/quote/



So that saves you, what, $500 a year in taxes?

More that that and hey we are getting screwed, so I'll take whatever I can.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We do Maryland for the state tax deduction and we found out last year that each parent can have a 529 for each child. In our case, what we thought was a 5K state tax deduction is now 10K.[/quote/



So that saves you, what, $500 a year in taxes?

More that that and hey we are getting screwed, so I'll take whatever I can.

How do you get more than that? Ok, I see, the top marginal rate in Maryland is 5.75% so I guess you'd save $575 in taxes.

[Anonymous]

I had a 529 - opened for 2 years, did deduction carry forwad.

In the end .....
the high fees and poor performance cost met money.

Calvert is not worth it -others are much stronger performing.

Walk away from the tax deduction.

[Anonymous]

My broker says DC's 529 plan is very poorly managed. In the long run meaning when it is time for college is not the time to learn about your mistake. Try Virginia!

[Anonymous]

If I want to switch my investments out of DC's 529 to that of another state or vanguard, is there a holding period requirement, or can I do so immediately?

Tia

[Anonymous]

Anonymous wrote:If I want to switch my investments out of DC's 529 to that of another state or vanguard, is there a holding period requirement, or can I do so immediately?

Tia

You can do it immediately to another state plan. All 529 plans are run by states. You cannot go directly to Vanguard. Quite a few states use Vanguard funds including Utah & Nebraska.

[Anonymous]

Anonymous wrote:If I want to switch my investments out of DC's 529 to that of another state or vanguard, is there a holding period requirement, or can I do so immediately?

Tia

you can switch immediately - no holding period.

I made the mistake of investing in DC. I had a windfall and put it into college savings. My husband and I both opened accounts for our children - 10K for me and 10K for my husband.
After 2 years, we pulled all the money and took the deduction carry forward that DC offered at the time.

You need to read the details to see if it still is available.

If it is not - don't sit on the money while other plans are outperforming it. You lose whatever it cost you to open the plan - but get better returns which makes it worth the transaction costs.