CJ, Sarajoy529, MM others, 529 Alternative?

[cjeanette]

If you aren't wanting volatlity there is a MM option within a 529 plan.

If ytou are looking for a place to gift money they are a great choice for that.

CA does not get a state decuction right?

[SJ]

I will summarize my thoughts just in case it will help anyone else:

-No state tax deduction for anyone in CA
-OR residents can get OR state tax deduction, but it must be to a OR 529 plan
-Anyone can open a 529 in any state, regardless of residency, but can only get the state tax deduction for their home state


In addition to the 529 option, each individual can gift any other individual $13,000 without tax consequences (going up to $14,000 in 2013). This doesn't give an immediate tax deduction, but it does lower the overall estate and can be an effective tax strategy over the long-term.

[cjeanette]

It might worth looking into the OR plan for them to open.