529 Savings For your Kids

[doc holiday13]

My child is 4 years old now. I'm a little behind the ball on saving for college or trade school. Depending on the state you live in, you might get a state level tax benefit. Seems pretty sweet considering it can be used for other than college things like K-12 tuition, tutoring, or even transferring it to your kids Roth IRA. I looked at them a few years ago but wasn't super disciplined enough to allocate the funding to start

 

[Kroach]

Indiana is a 20% state tax credit. Max of $1500. So put in $7500 get $1500 on state tax. Can contribute through different accounts for different kids or spouse.

My wife is currently going to college so put everything through a 529 then pull it right out to pay for that semester. No student loans and get the 20%.

Definitely encourage everyone to take advantage of programs like these to lessen the tax burden.

 

[doc holiday13]

My wife is currently going to college so put everything through a 529 then pull it right out to pay for that semester. No student loans and get the 20%.

Thats how its gonna roll for my step kids. They're in private school so they'll each get a 529 that I'll fund in the next couple months to pay for their fall tuition

 

[Pharmseller]

Take a hard look at investment channels for your 529. I started one 25 years ago for my son. I was less than impressed with the rate of return.

 

[MThuntrrr]

Vanguard offers one directly from their website technically through Nevada, but it functions just like any other vanguard account

 

[dr.mooseknuckles]

I have one for each of my children and they're doing well. Was behind a bit for the youngest but got a big chunk in it in December. We contribute to each one monthly and they've done well. My finance guy said we should stop for our oldest, but we don't want any of our kids relegated to a school in state. Sure they can apply for scholarships, etc. but neither my wife or I were forced to stay in state.

Though looking at tuition costs, current in state at Clemson is about what I paid for out of state tuition 20 years ago. Pretty nuts.

 

[ODB]

We have one for our kid. One thing is that others can also contribute to it, so grandma and grandpa can give school-focused money.