Reply to When to stop contributing to a 529 plan

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]In this case, for a 12 year old.   No other kids to whom we can pass down any excess balance, and we're hoping to fully fund undergrad.  We will be retired when kid is in college, so hoping to make a good guess.  [b]Current balance is pretty high[/b], but I'm curious where others stop.  If your goal is to fully fund a school that costs $80k per year, would you stop contributing if the balance is less than $320,000 because you assume at least some growth that outpaces inflation?  [/quote]

Well, what is it?  Why do people share half-ass info. when asking for advice? This is an anonymous forum![/quote]

OP. Thanks for all the advice.  Good point about the 10% penalty being not that significant.  I’m probably overthinking the risk of overfunding.  Balance is currently $245k for 12 yo. I’m still contributing $17k per year, and now I’m starting to wonder when to stop contributions. [/quote]

It depends.  Do you think your kid has the resume and or desire to attend a $80K+ university (all of the T25 cost near that)?  Do you think they will want grad school?  Do you have other kids to transfer the money to if this kid doesn't use it? 
If you overfund, are you willing to leave it there and just give it to your kid, so they can use it later for school themselves, or for their own kids (your grandkids)?

Personally, I would run the calculations on what you currently have and what that will be worth in 6 years.  I think you will have plenty, so unless grad school is planned for, I would stop saving in 529 and start saving in other vehicles, that you won't pay a penalty for access if you don't need for college.

Your $245K should easily be over $400K when your kid graduates HS, even with you moving a portion to "safer" investments/MM when they turn 16.  
[/quote]

Thanks. No other kids to pass the excess balance on to.  Happy to let it go to future generations, but we're not so wealthy that we wouldn't miss it today.  I I've been targeting NESCAC schools recently because they would be a good fit for his personality, athletic and academic interests, so likely looking at ~ $80k per year.  Grad school of any kind is unlikely, but at this age, it's hard to know. [/quote]

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