Post by Jalapeñomel on Dec 28, 2017 10:14:57 GMT -5
I thought you guys might be the best to ask. We are considering moving money to a 529 (https://www.nysaves.org/home/why-ny-529-direct-plan/parents.html), but I’m having a hard time deciding.
If you have a college savings plan, which one do you have and how did you choose?
We set up a 529 for my son and will do the same for #2 when he/she comes along. I have it automatically transfer money each pay period.
I chose a 529 because it's what my financial planner suggested. I don't remember the specifics of why though. I DO know that it's easy for my mom to transfer money in to when she wants to.
Post by WanderingWinoZ on Dec 28, 2017 10:33:35 GMT -5
we have one for each girl. There are numerous companies/states that offer 529 plans. We just went with the one (john hancock alaska) our advisor suggested. Generally look for something with low expense ratios. I think most of them just generally use some type of time indexed mutual fund with a target date based on the kids birth year.
Post by simpsongal on Dec 28, 2017 10:37:40 GMT -5
I think there are some good threads on MM about this. Certain states have better than others 529 plans. I believe the order of priority is your own state if there is a tax benefit (e.g., in Virginia you can deduct up to $4K from state taxes per year, per kid). If there's no tax benefit, then go with one of the preferred state plans (which I can't remember off the top of my head....there should be lists on google or again, MM)
We have a NY 529 plan, set up on the website you linked. I don' t live in NY, but my state does not give any benefit for opening a plan through their state. I chose it because it had a low expense ratio. I think contributions to a NY 529 are tax deductible to NY residents so that might be your best bet.
Post by karinothing on Dec 28, 2017 13:20:00 GMT -5
WE live in VA and have a Nevada 529. My dad did financial planning for a living and said it was the best. I don't even remember why, but there you have it.
Post by goldengirlz on Dec 28, 2017 13:25:47 GMT -5
We’ve had the NY plan for a few years now and we’ve been pretty happy with it. We’re not current NY residents but I believe you’d get a tax deduction for using it.
What are you wavering about? Which plan to pick or whether to open one at all?
The NY Saves 529 is the one we have set up for Hobbes. We chose it because we are NYS residents, and I think we can deduct contributions to the plan from our state (only) income taxes, up to a limit of $5k/year. We are using age-based investment options.
We have a trowe price Alaska 529 plan. When we set it up it had the best return. It can only be used for school expenses but it can be transferred to another child if that one doesn’t attend college.
We’ve had the NY plan for a few years now and we’ve been pretty happy with it. We’re not current NY residents but I believe you’d get a tax deduction for using it.
What are you wavering about? Which plan to pick or whether to open one at all?
A little bit of both. I’m fairly certain we will go with this investment option, but it always helps to hear other people use it and have been happy with it.
We have 529s that were originally started by my old job. When I left I moved them to our state plan for tax advantages.
The new tax plan is making changes to how 529s can be used, so you would be able to use them for private school or religious school. If that comes to fruition, we would likely put significantly more in each of them and use at least a portion toward our kids’ tuition during primary school years.
Under the new tax plan, contributions to a 529 (up to $10k/year) may also be used for private/independent schools for grades k-12.
Gah! I hate that I’m considering sending D to a private school in the city. I won’t, but I’m considering it.
This is a huge giveaway to the wealth. Someone could put $200k in a 529 right now for their 5 year old, take away $10k a year for private school, and still be left with over $300k for college (assuming healthy investment growth) in 13 years.
Post by CheeringCharm on Dec 29, 2017 9:52:51 GMT -5
We have the NYS one for the (minimal) tax advantage. lol
We plan to stop saving in the accounts once they reach a certain # and continue saving in regular brokerage accounts so the kids have more flexibility with how they use the money. We initially started saving with the assumption that they'd want to go to the best school they can get into but honestly look at the cost of tuition at private schools and the degree inflation that exists, it might make more sense for them to go to a state school and use the left over money for grad school. If works pays for grad school, then they can use the money to put towards a down payment for a house or whatever.
Gah! I hate that I’m considering sending D to a private school in the city. I won’t, but I’m considering it.
This is a huge giveaway to the wealth. Someone could put $200k in a 529 right now for their 5 year old, take away $10k a year for private school, and still be left with over $300k for college (assuming healthy investment growth) in 13 years.
Yes, I was reading this article a few days ago and got angry.
We have a 529. I think it's in the state we live in. We also have a savings account for them currently invested. That way they have funds that are not all relating to education as well.
We have a Utah one because it was recommended here and in an article that someone posted above, because there is no tax advantage in NJ. Now that we're moving to NY we may open a NY account for the tax benefit, but I don't really know how that works...
Under the new tax plan, contributions to a 529 (up to $10k/year) may also be used for private/independent schools for grades k-12.
Is the $10k limit new?
Yes, this is a new rule coming out of the republican tax plan they just passed in December and trump signed last week. In addition to higher ed, you can also now withdraw up to $10k/year for educational expenses for private and independent schools for k-12. That's the new part. The part about it being for private school.