Anonymous
05/28/2014 14:11
Subject: DC 529 plan vs out of state options
Has anyone rolled over the current funds after two years of having the account opened, but continued to contribute to the account for future tax deductions?
Anonymous
05/27/2014 18:17
Subject: DC 529 plan vs out of state options
We haven't done it yet but will when the 2 years are up.
Anonymous
05/27/2014 17:47
Subject: DC 529 plan vs out of state options
Has anyone actually done this (after 2 years moved the $ to another 529 plan)?
Anonymous
05/24/2014 08:52
Subject: DC 529 plan vs out of state options
Also here, from the DC 529 plan website:
"Are there any DC income tax consequences for early withdrawals?
Any DC tax deduction taken shall be subject to recapture in the following scenarios:
"a withdrawal or rollover is taken within two years of the establishment of the account for any reasons other than the payment of qualified higher-education expenses;
withdrawals taken due to death or disability of, or scholarship to, a designated beneficiary (except that only the amount of the scholarship is exempt from recapture);
the funds are transferred to another account under the plan."
http://www.dccollegesavings.com/About-FAQ.aspx#TaxEarlyWithdrawal
"Are there any DC income tax consequences for early withdrawals?
Any DC tax deduction taken shall be subject to recapture in the following scenarios:
"a withdrawal or rollover is taken within two years of the establishment of the account for any reasons other than the payment of qualified higher-education expenses;
withdrawals taken due to death or disability of, or scholarship to, a designated beneficiary (except that only the amount of the scholarship is exempt from recapture);
the funds are transferred to another account under the plan."
http://www.dccollegesavings.com/About-FAQ.aspx#TaxEarlyWithdrawal
Anonymous
05/24/2014 08:39
Subject: DC 529 plan vs out of state options
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).
"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).
Anonymous
05/24/2014 07:48
Subject: DC 529 plan vs out of state options
"In doing more research, it appears that you only have to wait 2 years after you establish your account and then you can roll it all over without penalty. (I thought it was 2 years after each contribution.) You can then continue contributing to DC and do an annual rollover to another state, also without penalty."
Where did you see this? I really need to look at rolling-over the account - the Calvert returns just suck.
Where did you see this? I really need to look at rolling-over the account - the Calvert returns just suck.