In my state you can apply for the state to deposit up to $500 annually

Feb 26, 2021
2:35:23pm

goldengoose Redshirt Freshman

Per kid per account, up to two accounts on top of what I contribute.
I have an account for each kid and so does my wife. That's $1000 for each kid per year as long as I qualify.
This is in Maryland.

This message has been modified

Originally posted on Feb 26, 2021 at 2:35:23pm

Message modified by goldengoose on Feb 26, 2021 at 2:36:05pm

Message modified by goldengoose on Feb 26, 2021 at 2:36:14pm

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goldengoose

Bio page: goldengoose
Joined: Nov 29, 2011
Last login: Apr 29, 2024
Total posts: 832 (1 FO)

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Messages

Author

Time

Help me wrap my mind around 529 plans.

CougaRR4L

2/26/21 2:25pm

It’s not that great. In my state I get a deduction on State income tax for

Iman23

2/26/21 2:29pm

In my state you can apply for the state to deposit up to $500 annually

goldengoose

2/26/21 2:35pm

Is that based on income? What do you mean apply for it?

Iman23

2/26/21 2:51pm

Yes, it's income based. It phases out after $175k.

goldengoose

2/26/21 5:19pm

The answer to your first question is yes.

HenderCoug

2/26/21 2:35pm

Haha. Good catch. Edited.

CougaRR4L

2/26/21 2:37pm

I’m saving 6.9% on my state tax.

BoiseCougar

2/26/21 2:35pm

So a few hundred bucks a year?

rggee

2/26/21 3:19pm

Yep

BoiseCougar

2/26/21 3:23pm

It can be used for any educational expenses, not just tuition

WhoisJohnGalt

2/26/21 2:36pm

Why is it a .25 deduction? It’s only on state income tax, which in my state is 5

Iman23

2/26/21 2:50pm

It depends on the state

WhoisJohnGalt

2/26/21 2:57pm

Wow. That’s pretty awesome benefit. I think most states allow the transfer

Iman23

2/26/21 4:18pm

I think Utah is capped around a $200 credit

rivercitycoug

2/26/21 4:31pm

See that sounds more worth it to me.

CougaRR4L

2/26/21 8:28pm

Can a person use one of these plans for grandchildren's college expenses?

fulano

2/26/21 2:43pm

Yes

Iman23

2/26/21 2:50pm

I do it just because it forces me to contribute or remember doing it..

cougfanz

2/26/21 2:56pm

If you aren't going to pay for your kids' college tuition, then don't do a 529

El Paso Coug

2/26/21 2:58pm

You can also pay for education expenses from your own Roth IRA with no early

rivercitycoug

2/26/21 3:05pm

You can only withdraw your contributions though right? So no investment benefit.

Pepe

2/26/21 3:15pm

True, but the investment benefit is eventually there for you at 59 1/2

rivercitycoug

2/26/21 8:39pm

529’s suck - too many restrictions and zero guarantees - not what you need

Jersey hunter

2/26/21 3:12pm

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