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Reply to "DC 529 plan vs out of state options"
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[quote=Anonymous]http://www.savingforcollege.com/529_plan_details/index.php?page=plan_details&plan_id=70 "State tax recapture provisions: The principal portion of nonqualified withdrawals from this plan, and rollovers within two years of account opening, are included in District of Columbia taxable income to the extent of prior District of Columbia tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability and withdrawals made on account of the beneficiary's receipt of a scholarship." Yes, Calvertbis awful. For us (with a young child), it makes sense to go with the state street fund (which follows the S&P 500) and has a relatively low expense ratio (.5%, although still higher than many other states). [/quote]
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