529 plan

are you investing in this? or are you doing something else to set up your little one's future? I don't know much about the subject but wanted a little insight on it

Re: 529 plan

I've seen this mentioned on the parenting board, but don't know what it really is. I am interested in this as well.

I think my friend set something up through Gerber, but setting up a college fund is super important to me. My mom even had a baby bottle that people put money in for LO's college fund. So I want to start an account with it once she is here.

529 plan

I'm on the fence. With the 529 I believe the money HAS to be used for school or its very heavily taxed but you can do a tax write off up to $10k per year for the money you invest. I'm trying to do my research and see if there is a better alternative.

529 plan

We're doing the 529. We spoke to our family financial advisor and this is what he recommended. Yes the money does have to be used for college, but any other family member can use it(including the parents), if the child it was originally meant for doesn't go to college.

If I have 2 or 3 kids, I'm thinking the chances that at least one of them go to college is pretty good

Re: 529 plan

How do you go about opening one? Does it have to be with a specific financial institution or bank?

Re: 529 plan

Yes, we have one. Our accountant also advised that we get one rather than a regular savings account. I have direct desposit and it is automatically taken out. It is PRE tax from your salary, so of course it would be taxed when one is to take it out. However, it can be passed down to other children if the first doesnt use it AND it can also be used for a down payment on a home for a first time home buyer. This is a smart thing. Some employeers offer it through their Human Resource dept or you can also just go to your bank. I went to my bank (SCNB) and in less then 1 hour I was done. Check with your financial advisor or check out https://uii.nysaves.s.upromise.com/content/home.html you can sign up right online.

Re: 529 plan

We have one set up for both our boys. It is setup on automatic debit from our account.

IMO, it is a waste to just have a regular savings account because that doesn't grow. At least in a 529 plan, your investments grow and there is a gain. And so much of a gain that even if they don't go to college or you withdraw the money from it, the tax you'll be charged is much less than what you have gained. Plus the tax is only on what you've contributed, not on the overall gain throughout the years. Seems like a win win to me.

Re: 529 plan

Re: 529 plan

I never thought to use one account for more than one child...so lets say by the time my oldest is ready for college I have $80,000 in the account, can I use $40,000 for her and then take the other $40,000 out a few years later for #2? is that what your saying?

Re: 529 plan

Re: 529 plan