Anonymous
09/20/2016 17:33
Subject: Help understand 529 plan
I have been in the Georgia 529 plan since my 14YO was one or two. I can honestly say it has never lost a huge chunk of money. It fluctuates, but has overall been climbing non-stop since we invested. It's at the point that nearly 50% of the value of the account is in earnings.
My sister is starting to use her 529 for her son. It's such a burden off their shoulders as they're dealing with her husband's health crisis.
My sister is starting to use her 529 for her son. It's such a burden off their shoulders as they're dealing with her husband's health crisis.
Anonymous
09/20/2016 11:53
Subject: Re:Help understand 529 plan
Anonymous wrote:Anonymous wrote:An Introduction to 529 Plans
https://www.sec.gov/investor/pubs/intro529.htm
And way more details here:
http://www.savingforcollege.com/
Reading it what jumps at me is that the funds can decline, i.e. it is investment funds that may loose value... I understand 401K is in the same type of boat, but it is sort of far out and hopefully will make it up over years before retirement (we have about 30 years). I am so risk adverse
Sure, but we dI'd the VA prepaid. So, I got an inheritance and at once we paid for both kids 4 years. Didn't want to gamble on their education dollars. Something really nice about having college savings over and done with.
Anonymous
09/20/2016 09:33
Subject: Re:Help understand 529 plan
Anonymous wrote:An Introduction to 529 Plans
https://www.sec.gov/investor/pubs/intro529.htm
And way more details here:
http://www.savingforcollege.com/
Reading it what jumps at me is that the funds can decline, i.e. it is investment funds that may loose value... I understand 401K is in the same type of boat, but it is sort of far out and hopefully will make it up over years before retirement (we have about 30 years). I am so risk adverse
Anonymous
09/20/2016 09:21
Subject: Help understand 529 plan
Your contributions may be (depends on the state) deductible from your state income tax.
The earnings are exempt from federal and state taxes.
There is no limitation about what school you use it for (assuming it's an accredited school). If you do the VA pre-paid and do not go to a VA state school, there are ways to convert it to a different plan and apply the funds to any school. It may not be as much of a cost advantage though.
Extra money can be transferred to another beneficiary with no tax penalty (ie, a younger sibling); used for grad school; or withdrawn (and you pay a penalty plus income tax on the earnings). If your child receives a scholarship, you can withdraw the amount of the scholarship penalty free (but you do have to pay the income tax on the earnings.) You may also be able to set remaining funds as a legacy for future grandchildren, though that's a bit more complicated.
The earnings are exempt from federal and state taxes.
There is no limitation about what school you use it for (assuming it's an accredited school). If you do the VA pre-paid and do not go to a VA state school, there are ways to convert it to a different plan and apply the funds to any school. It may not be as much of a cost advantage though.
Extra money can be transferred to another beneficiary with no tax penalty (ie, a younger sibling); used for grad school; or withdrawn (and you pay a penalty plus income tax on the earnings). If your child receives a scholarship, you can withdraw the amount of the scholarship penalty free (but you do have to pay the income tax on the earnings.) You may also be able to set remaining funds as a legacy for future grandchildren, though that's a bit more complicated.
Anonymous
09/20/2016 09:21
Subject: Re:Help understand 529 plan
An Introduction to 529 Plans
https://www.sec.gov/investor/pubs/intro529.htm
And way more details here:
http://www.savingforcollege.com/
https://www.sec.gov/investor/pubs/intro529.htm
And way more details here:
http://www.savingforcollege.com/
Anonymous
09/20/2016 09:12
Subject: Help understand 529 plan
Hello all,
Many people here mentioned 529 for college. I read a lot on this. Most articles talk about how great it is. I understand it is state tax deductible (not federal)? What other advantages for this plan? Would not this limit us to certain schools (say only VA schools, or only public), would not it limit us for financial aid if we were to qualify without it? We have roughyl 12 years to go before college.
What if our kids choose NOVA or similar lower tuition college, how do we get our money out of 529 if there is a surplus?
When some say "we are fully funded in 529", what does that mean? certain amount?
Many people here mentioned 529 for college. I read a lot on this. Most articles talk about how great it is. I understand it is state tax deductible (not federal)? What other advantages for this plan? Would not this limit us to certain schools (say only VA schools, or only public), would not it limit us for financial aid if we were to qualify without it? We have roughyl 12 years to go before college.
What if our kids choose NOVA or similar lower tuition college, how do we get our money out of 529 if there is a surplus?
When some say "we are fully funded in 529", what does that mean? certain amount?