Toggle navigation
Toggle navigation
Home
DCUM Forums
Nanny Forums
Events
About DCUM
Advertising
Search
Recent Topics
Hottest Topics
FAQs and Guidelines
Privacy Policy
Your current identity is: Anonymous
Login
Preview
Subject:
Forum Index
»
Money and Finances
Reply to "When to stop contributing to a 529 plan"
Subject:
Emoticons
More smilies
Text Color:
Default
Dark Red
Red
Orange
Brown
Yellow
Green
Olive
Cyan
Blue
Dark Blue
Violet
White
Black
Font:
Very Small
Small
Normal
Big
Giant
Close Marks
[quote=Anonymous][quote=Anonymous]The withdrawal penalty is only 10% of the gains. If you put $200K in, and get $300K gains, and only spend $100K (in-state tuition + boarding), the penalty is at most 10% of the gains: 10% *($300K - (60% * 100K)) = $24K, while avoiding any intermediate taxes during the growth phase. That's a big amount by itself, but not so big in the 20-year scheme of things with avoiding paying all that tuition, and considering the gains were largely unearned free investment income above inflation. [/quote] but you also have to pay the taxes. so 10% penalty + 20% cap gains, most likely. [/quote]
Options
Disable HTML in this message
Disable BB Code in this message
Disable smilies in this message
Review message
Search
Recent Topics
Hottest Topics
