Reply to Single parent in need of debt management/savings advice

Forum Index » Money and Finances

Reply to "Single parent in need of debt management/savings advice"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here…one last question.  Just reading the "DC vs VA 529 forum"…looks like some folks don't use the DC 529 plan because the fees are high (they use Utah? Huh.) Anyway some of you have advised to signif lower my contrib to DD's 529 ($120/yr to match dad's) but the $$ I put in her 529 is tax advantaged…company has a dependent day care account that allows me to set aside up to 5K annually pre-tax to cover child care expenses. I've been setting aside the whole 5K and transferring to 529. What if I lowered that amount to 4K/yr and put in 529 for the maximum tax break? Then it's a pre-tax contribution that further lowers my taxable income after the return (would end up being $333/mo vs $120/mo).[/quote]

OP I am curious about what you're doing with your dependent care account - it sounds like you are putting the money aside and then transferring it to a 529? How is that allowed? Under my plan, you only get reimbursed after you submit receipts for care expenses. [/quote]

I have the money withheld monthly to total an annual sum of 5K; I wait until just the end of the year to submit receipts, receive the reimbursement, and dump it into 529 just before year's end. In Jan of following year, I start over. [/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