Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here. I am using the 401K to save for DD. I will be become 59.5 in her soph. year. When DD was a baby and I came up with a strategy, I realized that 401K is not considered an asset from a financial aid perspective...Plus, 401K is tax deferred on State and Fed, but not the 529.

This is only an option for those that had kids late...

But won't ou need the money in the 401k to retire? Not to be snark, but if in the future you need money to live during your retirement, is not like you can borrow it… So, how are you going to make up for this money you are taking out of your retirement plan to pay for college?

Unless you have other funds? Such as investment properties, inheritance, etc? But wouldn't those defeat the purpose of nothing having assists to qualify for financial aid?

Instead of 10K in retirement and 5K in a 529, I put 15K in retirement. Is it that hard to figure out?

You are a complete idiot.

There are no federal tax advantages to a 529. My DD will go to college, and I will retire. As for me being an idiot, you do not know me. So, I must assume you are insecure in your own decisions. Mine is planned out. Oh, the other thing is Company matches 401k Contribution...

No - there is a HUGE federal tax advantage of a 529 plan - the money is TAX FREE. So if you have 100K in a 401K or IRA vs. 100K in a 529, you really have $60K in the 401k/IRA versus the $100K in the 529 to spend for school.

Is this correct? Does it mean that you 529 saving is always tax free. Or is it because you save for 529 from your after tax income while you save for 401K from your pre-tax income?

In order to put $100K in a 401k you needed to earn 100K
In order to put $100K in a 529, you needed to earn 125K (assuming federal tax rate of 25% for illustrative purposes only!)

When you withdraw from the 401K, you pay tax at your current rate.
When you withdraw from your 529, you do not pay taxes - because you already did.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here. I am using the 401K to save for DD. I will be become 59.5 in her soph. year. When DD was a baby and I came up with a strategy, I realized that 401K is not considered an asset from a financial aid perspective...Plus, 401K is tax deferred on State and Fed, but not the 529.

This is only an option for those that had kids late...

But won't ou need the money in the 401k to retire? Not to be snark, but if in the future you need money to live during your retirement, is not like you can borrow it… So, how are you going to make up for this money you are taking out of your retirement plan to pay for college?

Unless you have other funds? Such as investment properties, inheritance, etc? But wouldn't those defeat the purpose of nothing having assists to qualify for financial aid?

Instead of 10K in retirement and 5K in a 529, I put 15K in retirement. Is it that hard to figure out?

You are a complete idiot.

There are no federal tax advantages to a 529. My DD will go to college, and I will retire. As for me being an idiot, you do not know me. So, I must assume you are insecure in your own decisions. Mine is planned out. Oh, the other thing is Company matches 401k Contribution...

No - there is a HUGE federal tax advantage of a 529 plan - the money is TAX FREE. So if you have 100K in a 401K or IRA vs. 100K in a 529, you really have $60K in the 401k/IRA versus the $100K in the 529 to spend for school.

Is this correct? Does it mean that you 529 saving is always tax free. Or is it because you save for 529 from your after tax income while you save for 401K from your pre-tax income?

Anonymous wrote:Re. college overseas - not sure how it works in the UK, but in Ireland, where I'm from, you have to be resident in the EU for at least 3 of the 5 years immediately preceding college entry before you're eligible for a free college education there. Non-EU-resident tuition is about $15k/year.

I doubt anyone Americans are looking at colleges in Ireland. More like Canada, France, and the UK.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here. I am using the 401K to save for DD. I will be become 59.5 in her soph. year. When DD was a baby and I came up with a strategy, I realized that 401K is not considered an asset from a financial aid perspective...Plus, 401K is tax deferred on State and Fed, but not the 529.

This is only an option for those that had kids late...

But won't ou need the money in the 401k to retire? Not to be snark, but if in the future you need money to live during your retirement, is not like you can borrow it… So, how are you going to make up for this money you are taking out of your retirement plan to pay for college?

Unless you have other funds? Such as investment properties, inheritance, etc? But wouldn't those defeat the purpose of nothing having assists to qualify for financial aid?

Instead of 10K in retirement and 5K in a 529, I put 15K in retirement. Is it that hard to figure out?

You are a complete idiot.

There are no federal tax advantages to a 529. My DD will go to college, and I will retire. As for me being an idiot, you do not know me. So, I must assume you are insecure in your own decisions. Mine is planned out. Oh, the other thing is Company matches 401k Contribution...

No - there is a HUGE federal tax advantage of a 529 plan - the money is TAX FREE. So if you have 100K in a 401K or IRA vs. 100K in a 529, you really have $60K in the 401k/IRA versus the $100K in the 529 to spend for school.

Anonymous wrote:Re. college overseas - not sure how it works in the UK, but in Ireland, where I'm from, you have to be resident in the EU for at least 3 of the 5 years immediately preceding college entry before you're eligible for a free college education there. Non-EU-resident tuition is about $15k/year.

Plus living expenses, flights back and forth, etc. Not always the cheaper option.

Re. college overseas - not sure how it works in the UK, but in Ireland, where I'm from, you have to be resident in the EU for at least 3 of the 5 years immediately preceding college entry before you're eligible for a free college education there. Non-EU-resident tuition is about $15k/year.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here. I am using the 401K to save for DD. I will be become 59.5 in her soph. year. When DD was a baby and I came up with a strategy, I realized that 401K is not considered an asset from a financial aid perspective...Plus, 401K is tax deferred on State and Fed, but not the 529.

This is only an option for those that had kids late...

But won't ou need the money in the 401k to retire? Not to be snark, but if in the future you need money to live during your retirement, is not like you can borrow it… So, how are you going to make up for this money you are taking out of your retirement plan to pay for college?

Unless you have other funds? Such as investment properties, inheritance, etc? But wouldn't those defeat the purpose of nothing having assists to qualify for financial aid?

Instead of 10K in retirement and 5K in a 529, I put 15K in retirement. Is it that hard to figure out?

You are a complete idiot.

There are no federal tax advantages to a 529. My DD will go to college, and I will retire. As for me being an idiot, you do not know me. So, I must assume you are insecure in your own decisions. Mine is planned out. Oh, the other thing is Company matches 401k Contribution...

Anonymous wrote:DC plan has a DC income tax benefit for DC residents. We have been pleased with it. Tax savings more than offset any slightly higher fees.

Same here. Use the DC 529 for the tax relief and have two 529s at Merrill Lynch.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:NP here. I am using the 401K to save for DD. I will be become 59.5 in her soph. year. When DD was a baby and I came up with a strategy, I realized that 401K is not considered an asset from a financial aid perspective...Plus, 401K is tax deferred on State and Fed, but not the 529.

This is only an option for those that had kids late...

But won't ou need the money in the 401k to retire? Not to be snark, but if in the future you need money to live during your retirement, is not like you can borrow it… So, how are you going to make up for this money you are taking out of your retirement plan to pay for college?

Unless you have other funds? Such as investment properties, inheritance, etc? But wouldn't those defeat the purpose of nothing having assists to qualify for financial aid?

Instead of 10K in retirement and 5K in a 529, I put 15K in retirement. Is it that hard to figure out?

You are a complete idiot.

Anonymous wrote:

Anonymous wrote:NP here. I am using the 401K to save for DD. I will be become 59.5 in her soph. year. When DD was a baby and I came up with a strategy, I realized that 401K is not considered an asset from a financial aid perspective...Plus, 401K is tax deferred on State and Fed, but not the 529.

This is only an option for those that had kids late...

But won't ou need the money in the 401k to retire? Not to be snark, but if in the future you need money to live during your retirement, is not like you can borrow it… So, how are you going to make up for this money you are taking out of your retirement plan to pay for college?

Unless you have other funds? Such as investment properties, inheritance, etc? But wouldn't those defeat the purpose of nothing having assists to qualify for financial aid?

Instead of 10K in retirement and 5K in a 529, I put 15K in retirement. Is it that hard to figure out?

"not having assets" * ^^^^

Anonymous wrote:NP here. I am using the 401K to save for DD. I will be become 59.5 in her soph. year. When DD was a baby and I came up with a strategy, I realized that 401K is not considered an asset from a financial aid perspective...Plus, 401K is tax deferred on State and Fed, but not the 529.

This is only an option for those that had kids late...

But won't ou need the money in the 401k to retire? Not to be snark, but if in the future you need money to live during your retirement, is not like you can borrow it… So, how are you going to make up for this money you are taking out of your retirement plan to pay for college?

Unless you have other funds? Such as investment properties, inheritance, etc? But wouldn't those defeat the purpose of nothing having assists to qualify for financial aid?

NP here. I am using the 401K to save for DD. I will be become 59.5 in her soph. year. When DD was a baby and I came up with a strategy, I realized that 401K is not considered an asset from a financial aid perspective...Plus, 401K is tax deferred on State and Fed, but not the 529.

This is only an option for those that had kids late...

DC plan has a DC income tax benefit for DC residents. We have been pleased with it. Tax savings more than offset any slightly higher fees.

1st step - max out retirement options

We live in DC and do not use the DC 29. We started saving for college 9 years ago before there was the baby boom in the city. The # of families in DC saving for college was low so the administrative expenses for the program were high. (You have a fixed cost to administer the plan if you have 2000 or 200000 people with an account).

Anyway - I am unsure if that guidance still applies but we decided to open a Virginia plan through a broker with American Funds. We invest in the same funds that my finanial advisor has advised on for our retirement savings and this approach has worked very well to date.