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joan713
LIF Adult
Member since 12/07 1360 total posts
Name:
Joan
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If you have a 529 savings a/c for your little one..
My daughter has been looking into a college savings plan to start putting $ away for my granddaughter. The one she looked into told her that if the $ is used for college, you don't pay tax, but if it's used for anything else, you pay the tax on the $. Is this true? She's thinking, what if she doesn't want to go to college? What if she uses the $ for a car? Are there any plans where you don't pay tax no matter what you use the $ for?
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Posted 2/28/12 7:13 PM  |
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Peainapod
Peanuts are here!
Member since 1/09 13591 total posts
Name:
Diana
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Re: If you have a 529 savings a/c for your little one..
i believe the money needs to be used for educational purposes. thats the whole poit of saving tax free for college.
if its withdrawn for non educational expenses, i believe there is a penalty. i have a 529 account set up for DS where we live in PA and im pretty sure thats how it works.
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| Posted 2/28/12 9:22 PM |
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DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
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Re: If you have a 529 savings a/c for your little one..
If the money is used for college or trade school type program it is tax free otherwise you will have to pay taxes on the money saved. There is no other option. If you want to save money for your child for other purposes (car, home etc.) 529 is not the way to go.
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| Posted 2/28/12 9:39 PM |
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Jan1975
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Member since 8/09 3846 total posts
Name:
Sarah
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Re: If you have a 529 savings a/c for your little one..
I do believe that if that child does not go to college the account can be transferred to another child for educational purposes. I do not know thee specific details though.
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| Posted 2/28/12 9:48 PM |
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A3CM
Avatar Title
Member since 9/08 3762 total posts
Name:
Mommy
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Re: If you have a 529 savings a/c for your little one..
also there are MANY colleges that do NOT accept 529s.
please research this thoroughly... they are HORRIBLE plans.
but to each their own
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| Posted 2/28/12 10:14 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19458 total posts
Name:
L
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Re: If you have a 529 savings a/c for your little one..
You can still save on your own - go to your bank and have an account created. You can deposit monies monthly into the account. You will be in control of the money and can use it for anything. While you will not receive the tax benefits, you are not limited to the constraints of a 529. There have been many articles about this topic in the news and I would do a lot of research on the topic.
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| Posted 2/29/12 12:01 AM |
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DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
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Re: If you have a 529 savings a/c for your little one..
Posted by SweetApril
I do believe that if that child does not go to college the account can be transferred to another child for educational purposes. I do not know thee specific details though.
this is true
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| Posted 2/29/12 1:59 AM |
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