Virginia also has a great tax deduction and results in us getting a huge refund each year.

We put in $7200/year per kid (14,400 total), and that ends up more than the max amount for the tax deduction, so I’m not sure the limit.

We recently split this up so that each of us puts in $300 per month per kid, instead of one person having an account that does $600 per month per kid, bc the tax deduction is per person, and you have to have an account in each spouse’s name to get double the amount when married.

Anonymous wrote:

Anonymous wrote:We have $650k for two kids, one elementary and other middle school. Not adding anything more

I have to assume this is a troll. If you are rich enough to have $650k to stuff into a 529, why in the world would you actually do so. The tax advantages are not that amazing.

Not a troll. Grandparents super funded 5 years of annual gift tax limit soon after they were born. This is what they’ve grown to since then. To be clear, it’s $650k between the two of them, not $650k each.

Maryland gives you like 5k per person state tax break so for a married couple 10k off state taxes and Maryland has done nothing but raise the hell out of taxes so if you are in md it’s worth it to contribute to get that state tax break.

Anonymous wrote:

Anonymous wrote:We have $650k for two kids, one elementary and other middle school. Not adding anything more

I have to assume this is a troll. If you are rich enough to have $650k to stuff into a 529, why in the world would you actually do so. The tax advantages are not that amazing.

They are better than no tax advantages though. If you expect to spend the money why wouldn’t you?

Anonymous wrote:

Anonymous wrote:We have ~$110k in 529 for our 2.5 year old. Although admittedly a fair amount has come as gifts from parents and grandparents. With compounding over the next 16 years, should be in a good position to cover private college.

We were also thinking about option of using portion of 529 to pay for elementary or secondary school but think the trade off is not worth it. Better to let it accrue/compound over time rather than reduce the balance.

Even ifyou're not actively contributing, you can still launder the money through a 529 for current tuition, at least in Virginia. Put in 4k, withdraw 4k to pay for ES/SS.

And the reason to “launder” money through the 529 is if your state allows a tax deduction. (sadly there is no federal deduction.) And this is actually a legal laundry. In Maryland, the tax deductible amount is less than the federal contribution limit, but you can carry over the deductions for a decade.

Anonymous wrote:Enough to pay for both kids to get PhDs if they want to.

PhDs are funded

Anonymous wrote:We have ~$110k in 529 for our 2.5 year old. Although admittedly a fair amount has come as gifts from parents and grandparents. With compounding over the next 16 years, should be in a good position to cover private college.

We were also thinking about option of using portion of 529 to pay for elementary or secondary school but think the trade off is not worth it. Better to let it accrue/compound over time rather than reduce the balance.

Even ifyou're not actively contributing, you can still launder the money through a 529 for current tuition, at least in Virginia. Put in 4k, withdraw 4k to pay for ES/SS.

We have ~$110k in 529 for our 2.5 year old. Although admittedly a fair amount has come as gifts from parents and grandparents. With compounding over the next 16 years, should be in a good position to cover private college.

We were also thinking about option of using portion of 529 to pay for elementary or secondary school but think the trade off is not worth it. Better to let it accrue/compound over time rather than reduce the balance.

It is with no taxes on gains a pretty good investment vehicle, especially if you some combination start early, readily have the money, are investing in total within the realm of what your children are actually likely to use on college etc. Some states have a small state tax deduction. You can use some money each year for private school expenses too.

Enough to pay for both kids to get PhDs if they want to.

Anonymous wrote:So what happens if you’ve overfunded it?

All sorts of options. Under current law, you can convert up to $30,000 to a Roth IRA for any beneficiary. You can preserve it as is for grandchildren and great grandchildren or anyone you deem a worthy beneficiary. You can make yourself a beneficiary and put $30,000 in your own Roth. You can make withdrawals for other financial needs and pay taxes and maybe some penalties. You can do a combination of all of the above. And maybe there’re some other things I’m missing because I’m not a tax professional.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have $650k for two kids, one elementary and other middle school. Not adding anything more

I have to assume this is a troll. If you are rich enough to have $650k to stuff into a 529, why in the world would you actually do so. The tax advantages are not that amazing.

I’m not sure what your definition of amazing is. Tax free growth and tax free withdrawals with the ability to convert to a Roth IRA or pass down to future descendants for their educational needs is effing amazing.

+100

We have $650,000 in for two adult kids that are done with college, funded by grandparents many years before they died and increased by the market. Hoping grandchildren can use it someday.

Anonymous wrote:

Anonymous wrote:We have $650k for two kids, one elementary and other middle school. Not adding anything more

I have to assume this is a troll. If you are rich enough to have $650k to stuff into a 529, why in the world would you actually do so. The tax advantages are not that amazing.

I’m not sure what your definition of amazing is. Tax free growth and tax free withdrawals with the ability to convert to a Roth IRA or pass down to future descendants for their educational needs is effing amazing.

So what happens if you’ve overfunded it?