Solved

529 college savings

Posted on 2014-12-27
5
114 Views
Last Modified: 2015-01-12
Hello,

I have two kids, 6 year old and 2 year old, and I wanted to start on a 529 savings plan, but don't know if there are any gotchas with these type of plans.  Anyone know, first hand, on how to start one and the options available?
0
Comment
Question by:uppercut7141
[X]
Welcome to Experts Exchange

Add your voice to the tech community where 5M+ people just like you are talking about what matters.

  • Help others & share knowledge
  • Earn cash & points
  • Learn & ask questions
5 Comments
 
LVL 44

Assisted Solution

by:Arthur_Wood
Arthur_Wood earned 125 total points
ID: 40520488
You might want to check out http://www.experts-exchange.com/Other/Math_Science/Q_27939471.html which asks almost the same question.
0
 
LVL 27

Assisted Solution

by:d-glitch
d-glitch earned 125 total points
ID: 40520494
This site offers an excellent starting point:
   http://www.finra.org/Investors/ProtectYourself/InvestorAlerts/529Plans/P010756

and beware of brokers' potential conflict of interest.
0
 
LVL 16

Assisted Solution

by:dhsindy
dhsindy earned 125 total points
ID: 40520638
This can get a little complicated so I would call where you do your banking and ask for financial advice about 529 plans (there are different ones for different purposes).  Your particular situation is important.

Basically, IRS Section 529 defines the plans but the various states can and have modified the plans  , so, you need to talk to someone who understands you states position.  There are two types of plans (a saving investment plan - similar to a 401(k) that invests in the various markets - you are the one taking the risks - your investments will rise and fall with the market) the other kind is (like a pre-paid tuition plan, you pay tuition at today's prices but you may be limited on your choice of schools - the fund manager bears most of the risk).  There is a contribution limit (notify others who my donate to the persons account) and probably penalties if the money is NOT spent for school expenses and there may be a deadline for using the money.

Your being a good parent - the important thing is to get professional local advice and choose a plan and get started as quickly as possible.

If you're interest in reading the IRS Code you will see there are many restrictions: http://www.law.cornell.edu/uscode/text/26/529
0
 
LVL 25

Accepted Solution

by:
nickg5 earned 125 total points
ID: 40525950
0
 
LVL 25

Expert Comment

by:nickg5
ID: 40544974
Your kids are lucky to have you making plans for them.
Good luck.
0

Featured Post

Independent Software Vendors: We Want Your Opinion

We value your feedback.

Take our survey and automatically be enter to win anyone of the following:
Yeti Cooler, Amazon eGift Card, and Movie eGift Card!

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

Okay. So what exactly is the problem here? How often have we come across situations where we need to know if two strings are 'similar' but not necessarily the same? I have, plenty of times. Until recently, I thought any functionality like that wo…
Lithium-ion batteries area cornerstone of today's portable electronic devices, and even though they are relied upon heavily, their chemistry and origin are not of common knowledge. This article is about a device on which every smartphone, laptop, an…
This is a video describing the growing solar energy use in Utah. This is a topic that greatly interests me and so I decided to produce a video about it.
I've attached the XLSM Excel spreadsheet I used in the video and also text files containing the macros used below. https://filedb.experts-exchange.com/incoming/2017/03_w12/1151775/Permutations.txt https://filedb.experts-exchange.com/incoming/201…

726 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question