I’m saving 6.9% on my state tax.

Sign up, and you'll be able to customize your font size and more! Sign up

Report problem with this ad

Feb 26, 2021
2:35:50pm

BoiseCougar All-American

I’m saving 6.9% on my state tax.

Tax free growth and my goal is to have enough for the kids to have for the first 1-2 years of college.

Report problem with this ad

BoiseCougar

Bio page: BoiseCougar
Joined: Oct 11, 2002
Last login: Apr 29, 2024
Total posts: 2,924 (13 FO)

Report problem with this ad

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

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

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

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

2/26/21 2:58pm

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

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

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

Report problem with this ad

Posting on CougarBoard

In order to post, you will need to either sign up or log in.

Report problem with this ad