Reply to Is It Really Gonna Cost $280K? OMG

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]More like $300K, going up 5% per year. [/quote]

Can’t do this forever.[/quote]

I've been thinking about the same thing. Even after DC graduate from college, I am going to keeping paying $8k/year into the 529 account. When I have grand kids, the account should help them a bit.[/quote]

That's a really generous thought however, what if they don't have kids or they fall into bad times and need another type of help?  I would save separately.  You can always do a lump sum 5 year contribution later...currently that's $70k or $140k joint.  [/quote]

What if?  None of us can predict the future.  It’s great to plan for the future you expect.  You can make adjustments as needed when the time comes.

After my children use the money in their 529s, I’m also going to continue to save for my future grandchildren’s education.  I’m speaking it into existence![/quote]

I’m all for optimism, but this is a little messed up. Your kids are their own sentient beings, but just vehicles for your ego. [/quote]

What in the world are you talking about?  On what planet is this “messed up”?!?  I’m sure my children won’t think it’s messed up when I contribute tens of thousands of dollars (tax free) to their children’s education.  Educational attainment is a part of our family’s legacy.  Clearly you’re unfamiliar with the concept.[/quote][/quote]

Generous thought poster - You should talk to our advisor or CPA. The rules of 529s will lock you into tax penalties so adjustments as needed are not without a heavy financial price. You do you but be informed. [/quote]

No, you just sound bitter that you can’t provide the same generous support for your future grandchildren.[/quote]

Let's see if I can make this clearer.  I am trying to say to you that saving with that goal is admirable.  But do it outside of a 529.  If all you can save is $8,000/year, you probably can't afford the penalties if your kids need the money for something else like health issues.  Put it in a regular investent account or better yet a ROTH if you're eligible.  Talk to your financial advisor.   [/quote]

You are misunderstanding my point.  Both of my elementary school children have 529s with over $100K.  My oldest child is 10 years old and her 529 has nearly $200K.  By the time they reach college, they should have around $300K each.  After my children have graduated from college (and hopefully graduate school), I will continue to contribute $8,000 per year to their 529s for my future grandchildren (and the DC tax deduction).  We can afford to contribute much more, but we don’t want to do so.  We will make it clear to our children that our 529 contributions are supplemental to their own—we don’t intend to fully fund our grandchildren’s education because that is their parent’s responsibility.  They should regard our contribution as a generous scholarship.  We won’t even tell them about our contribution until their children are a few years old.[/quote]

There are max 529 contribution limits per beneficiary in te $300-30k range  From the fgures you quote, dependig on where you live, the limits will be exhausted with your own children.  The IRS imposes these conditions so that people can't take advantage of the tax beaks for phanton people.  [/quote]

In DC proper (where I reside), the lifetime contribution limit is $500K PER BENEFICIARY.  I won’t reach that contribution limit for either child.  After the grandchildren are born, I will officially change the beneficiary, and that resets the contribution amount.[/quote]

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