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Spring Baby06
My two loves
Member since 5/05 3612 total posts
Name:
Jillian
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529 question
What if you move out of State, do most states offer a 529 plan?
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Posted 8/13/06 11:51 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: 529 question
as far as I know 529 is an account created by the federal government- so I think most states should have them.
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| Posted 8/13/06 6:36 PM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: 529 question
I think every state sponsors a plan. This site will l show you the plan for each state:
529 State Plans
and it allow you to compare plans. You don't HAVE to use NYs plan - but the benefit of doing so is contributions are tax deductible on your state income taxes. If you use an out of state plan, thats not the case.
I'm not sure how you would go about transferring from one state plan to another, but its not required if you move.
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| Posted 8/13/06 6:51 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: 529 question
Each state sponsors it's own 529 plans. NYS uses Vanguard and Columbia. An investor can use ANY STATE plan...they are not limited to the plan of the state you live. For example, say I would rather use American Fund's 529 plan even though it's not NYS sponsored... I can. I am still going to receive the tax benefits of a the 529 plan. What I do lose, it the state tax benefits on the contribution. NYS, as well as some other states, offer a tax incentive for contributing to a 529 plan and you would not receive that if you invested in another state's 529 plan.
I hope that helped a little. FM me with any questions.
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| Posted 8/13/06 6:52 PM |
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Spring Baby06
My two loves
Member since 5/05 3612 total posts
Name:
Jillian
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Re: 529 question
Posted by shamrock12472
Each state sponsors it's own 529 plans. NYS uses Vanguard and Columbia. An investor can use ANY STATE plan...they are not limited to the plan of the state you live. For example, say I would rather use American Fund's 529 plan even though it's not NYS sponsored... I can. I am still going to receive the tax benefits of a the 529 plan. What I do lose, it the state tax benefits on the contribution. NYS, as well as some other states, offer a tax incentive for contributing to a 529 plan and you would not receive that if you invested in another state's 529 plan.
I hope that helped a little. FM me with any questions.
this did help ,thanks!
Another question, what's with the 2010 expiration(for tax benefits)? How often would I have to file for an extension, how long does the extension last?
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| Posted 8/13/06 6:58 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: 529 question
Posted by Spring Baby06
Posted by shamrock12472
Each state sponsors it's own 529 plans. NYS uses Vanguard and Columbia. An investor can use ANY STATE plan...they are not limited to the plan of the state you live. For example, say I would rather use American Fund's 529 plan even though it's not NYS sponsored... I can. I am still going to receive the tax benefits of a the 529 plan. What I do lose, it the state tax benefits on the contribution. NYS, as well as some other states, offer a tax incentive for contributing to a 529 plan and you would not receive that if you invested in another state's 529 plan.
I hope that helped a little. FM me with any questions.
this did help ,thanks!
Another question, what's with the 2010 expiration(for tax benefits)? How often would I have to file for an extension, how long does the extension last?
That was just voted on in favor of by the House and Senate. The Pension Protection Act of 2006 will lift the sunset provisions due to take place in 2010 that would have effected teh tax treatment of 529 plans.
Message edited 8/13/2006 9:37:49 PM.
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| Posted 8/13/06 9:36 PM |
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