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529 Savings Plans and Question re: how you save money for DC

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cgdg61606
Little Brother Christopher

Member since 2/07

6815 total posts

Name:
Christine

529 Savings Plans and Question re: how you save money for DC

If you have a 529 Savings Plan for DC's college education, where do you have yours (what bank) and do you know where/how the money is invested? Do you deposit in frequent small amounts, or transfer larger amounts from say a CD or regular savings account?

Also, do you save for DC's college education separate from the money he/she receives as gifts? For example, do you save your own money strictly for DC's education and then also save the money DC receives as gifts separate for DC's future to use for say a car, wedding, house, etc.??

I need help trying to figure out the best way to save for DS!

Thanks so much for all responses!!!

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Posted 11/5/07 9:42 AM
 
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KPtoys
I'm getting old

Member since 5/05

8688 total posts

Name:
Karen

Re: 529 Savings Plans and Question re: how you save money for DC

We have Upromise. We also contribute some money each month to the 529. All money they get as gifts goes into the 529. All savings bonds are for their use.

Posted 11/5/07 9:47 AM
 

CathyB

Member since 5/05

19403 total posts

Name:

Re: 529 Savings Plans and Question re: how you save money for DC

We don't invest in 529s for the kids, we have brokerage accounts that we put money into and then invest for them. DH is in research at a fund so we are comfortable doing it that way.

Any monetary gifts they get are put into their savings accounts. That's not really earmarked for anything specific.

Posted 11/5/07 9:48 AM
 

Sassyz75
Turning a new page

Member since 5/05

9731 total posts

Name:
Dina

Re: 529 Savings Plans and Question re: how you save money for DC

I don't put any money into 529 plans as we are putting the most money we can into our own individual retirement accounts. I think it's more prudent to save for retirement... if we have extra, then that would go to DD, but we don't max our our retirement contribution, so we aren't doing a 529 yet.
DD has savings bonds and the rest of her money in ING account.

Posted 11/5/07 9:55 AM
 

KPtoys
I'm getting old

Member since 5/05

8688 total posts

Name:
Karen

Re: 529 Savings Plans and Question re: how you save money for DC

Posted by Sassyz75

I don't put any money into 529 plans as we are putting the most money we can into our own individual retirement accounts. I think it's more prudent to save for retirement... if we have extra, then that would go to DD, but we don't max our our retirement contribution, so we aren't doing a 529 yet.
DD has savings bonds and the rest of her money in ING account.



Is the money you have in the ING in her name?? I always want to open one in the kids name but I don't want to pay the taxes on it... I have a regular at the bank acct for the kids which is tax free but I would like to get the extra interest.

Posted 11/5/07 10:00 AM
 

Eireann
Two ladies and a gentleman!

Member since 5/05

12165 total posts

Name:

Re: 529 Savings Plans and Question re: how you save money for DC

We have ING accounts for the girls. Honestly, I don't think we've contributed anything to them. All of their monetary gifts goes directly in them. Currently, the Orange Savings Accounts receive 4.20% annual percentage yield and I would say, with the amount we have in Katherine's at this point (2 years later), it collects about $100/year that way.

Posted 11/5/07 10:02 AM
 

JenBenMen
party of five

Member since 9/06

11343 total posts

Name:
Jen

Re: 529 Savings Plans and Question re: how you save money for DC

We opened a NY direct plan 529 account. I have it in aggressive growth since DS is only 6 months old. Right now I deduct a small amount from my bank each month and I send his gifts from people/relatives. I will send more when I can.

Posted 11/5/07 10:02 AM
 

CookiePuss
Cake from Outer Space!

Member since 5/05

14021 total posts

Name:

Re: 529 Savings Plans and Question re: how you save money for DC

Each state has their own 529 plans and contracts with a money manager to direct the funds. In NYS, you may be eligible for a state tax deduction by investing in one of the NYS 529 plans.

NYS 529 Plans

Posted 11/5/07 10:03 AM
 

CookiePuss
Cake from Outer Space!

Member since 5/05

14021 total posts

Name:

Re: 529 Savings Plans and Question re: how you save money for DC

Posted by KPtoys

Posted by Sassyz75

I don't put any money into 529 plans as we are putting the most money we can into our own individual retirement accounts. I think it's more prudent to save for retirement... if we have extra, then that would go to DD, but we don't max our our retirement contribution, so we aren't doing a 529 yet.
DD has savings bonds and the rest of her money in ING account.



Is the money you have in the ING in her name?? I always want to open one in the kids name but I don't want to pay the taxes on it... I have a regular at the bank acct for the kids which is tax free but I would like to get the extra interest.



Most likely the bank account isn't tax free but falls within the Kiddie Tax guidelines and that's why no tax is due.

Posted 11/5/07 10:04 AM
 

KPtoys
I'm getting old

Member since 5/05

8688 total posts

Name:
Karen

Re: 529 Savings Plans and Question re: how you save money for DC

Posted by shamrock124

Posted by KPtoys

Posted by Sassyz75

I don't put any money into 529 plans as we are putting the most money we can into our own individual retirement accounts. I think it's more prudent to save for retirement... if we have extra, then that would go to DD, but we don't max our our retirement contribution, so we aren't doing a 529 yet.
DD has savings bonds and the rest of her money in ING account.



Is the money you have in the ING in her name?? I always want to open one in the kids name but I don't want to pay the taxes on it... I have a regular at the bank acct for the kids which is tax free but I would like to get the extra interest.



Most likely the bank account isn't tax free but falls within the Kiddie Tax guidelines and that's why no tax is due.




Well with their accts in their names and SSN's we get up to I think it's like $750 of the interest tax free (I think thats the limit) but with it in your name you pay tax on the interest at any level right?

Posted 11/5/07 10:11 AM
 

leighla
Support Cancer Research

Member since 5/05

16353 total posts

Name:
Lauren

Re: 529 Savings Plans and Question re: how you save money for DC

We have Upromise which feeds into a 529 Quarterly.

We also have an ING Savings account that we put money into and roll that into CDs.

Posted 11/5/07 10:14 AM
 

MommyofG
just the girls

Member since 5/05

9461 total posts

Name:
Janice

Re: 529 Savings Plans and Question re: how you save money for DC

I have a question- is the 529 plan for state colleges only and if they dont go to college what happens to that money?
DH opened up some account for DD but not a 529, he did something with our financial advisor.

Posted 11/5/07 11:05 AM
 

CookiePuss
Cake from Outer Space!

Member since 5/05

14021 total posts

Name:

Re: 529 Savings Plans and Question re: how you save money for DC

Posted by MommyofG

I have a question- is the 529 plan for state colleges only and if they dont go to college what happens to that money?
DH opened up some account for DD but not a 529, he did something with our financial advisor.



No, you can pay for any qualified higher education costs with a 529 and keep the withdrawals tax fee and it doesn't matter what school or where it's located. A pre-paid 529 tuition plan is usually for just state schools and that is where you pay the tuition at today's cost for education in the future so you are locking in.

If the beneficiary is not the owner, then the owner can just name another beneficiary to the account and the account can be used for that beneficiary.

Message edited 11/5/2007 11:38:32 AM.

Posted 11/5/07 11:32 AM
 
 

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