Maryland 529 options

[Anonymous]

Opening a Maryland 529 for the first time (up to the 2500 tax deduction limit only, will look into opening a Utah or NY 529 with lower fees if we have more money we want to put in). My child is just a baby, so our risk tolerance is pretty high. In our case, it seems like the equity market index portfolio is the clear winner, with .46% annual asset based fees? The Portfolio 2033 and 2036 ones are .86% fees, so quite a bit higher. Is there something I'm not thinking about other than risk tolerance, because it seems like most people choose the Portfolio ones? TIA.

https://maryland529.com/Portals/0/Files/cip_disclosure.pdf

[Anonymous]

I picked the portfolio but then once i had 3000 in I rolled over to vanguard for lower fees.

[Anonymous]

We did the prepaid as a baby to make sure we at least had something that we could not lose in the market. Once that was paid off, we did 2 529's - one in each parent so you can put in $5000 a year.

[Anonymous]

I think you can essentially put in as much as you want, but the tax deduction is 2500 max per parent.

[Anonymous]

OP here. Thanks. Yes, I put in only the max to get the MD tax deduction. The remainder we will put in a 529 with lower fees (probably NY).

[Anonymous]

Anonymous wrote:OP here. Thanks. Yes, I put in only the max to get the MD tax deduction. The remainder we will put in a 529 with lower fees (probably NY).

The deduction is very little just as fair warning. We do the 529 in MD as its easier for us but its not as much as they make it sound like. They are changing the rules this year from a newsletter I got but I did not read it carefully to understand the change.

[Anonymous]

I'm thinking of contributing for 3 kids , 2,500 each. what does the deduction actually look like ($ amount) for a family of 5 and a HH income f 100K?

[Anonymous]

Do your old taxes again but input this instead for a guess. Or look at your effective state tax rate.

[Anonymous]

Anonymous wrote:I'm thinking of contributing for 3 kids , 2,500 each. what does the deduction actually look like ($ amount) for a family of 5 and a HH income f 100K?

It is only off your state taxes. I think it was only a few hundred at best for one child, two accounts.

[Anonymous]

Anonymous wrote:We did the prepaid as a baby to make sure we at least had something that we could not lose in the market. Once that was paid off, we did 2 529's - one in each parent so you can put in $5000 a year.

Can you take a $5,000 deduction for each child - 2,500 in an account started by each parent?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We did the prepaid as a baby to make sure we at least had something that we could not lose in the market. Once that was paid off, we did 2 529's - one in each parent so you can put in $5000 a year.

Can you take a $5,000 deduction for each child - 2,500 in an account started by each parent?

Yes