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529 Plan Advice
Posted: Thu May 06, 2021 4:04 pm
by twocoach
With my oldest finishing up high school,we are going to need to withdraw some money from her 529 plan to start putting it towards her college expenses.
Anyone here gone through this yet and have any advice about what you learned, mistakes you made or opportunities you wish you would have taken advantage of earlier?
Re: 529 Plan Advice
Posted: Thu May 06, 2021 4:08 pm
by Deleted User 865
Tell the child to get FAFSA and take the 529 money to take a baller vacation to Cabo.
Re: 529 Plan Advice
Posted: Thu May 06, 2021 4:31 pm
by zsn
If you do take a distribution try to see if you can get a check in her name or deposit directly into her account. Also save every statement from the college in case they don’t send you the 1098-T form.
I got a very friendly letter from the Federales the first tax year after my daughter started college and we took the distribution. They even told us what to write in the letter in response and then a few weeks later sent a letter letting us know that the “matter has been satisfactorily resolved”. However, I could have avoided a few out-of-body moments while I opened the mail from The Man.
Re: 529 Plan Advice
Posted: Fri May 07, 2021 8:28 am
by twocoach
vega wrote: ↑Thu May 06, 2021 4:08 pm
Tell the child to get FAFSA and take the 529 money to take a baller vacation to Cabo.
Anything Kid #1 doesn't use on her undergrad will be left in there for Kid #2 to use in ten years.
Re: 529 Plan Advice
Posted: Fri May 07, 2021 8:39 am
by jhawks99
I've done my last FAFSA, youngest kid graduates from UK next weekend.
Re: 529 Plan Advice
Posted: Fri May 07, 2021 8:42 am
by twocoach
jhawks99 wrote: ↑Fri May 07, 2021 8:39 am
I've done my last FAFSA, youngest kid graduates from UK next weekend.
We have agreed to provide funding for her undergrad. She's on her own for any post grad program. So I assume that she'll be headed that way in 4 years if she gets into a PA program.
Re: 529 Plan Advice
Posted: Fri May 07, 2021 8:46 am
by jhawks99
Congrats twocoach. Hope she does well.
Re: 529 Plan Advice
Posted: Fri May 07, 2021 10:15 am
by Deleted User 865
twocoach wrote: ↑Fri May 07, 2021 8:28 am
vega wrote: ↑Thu May 06, 2021 4:08 pm
Tell the child to get FAFSA and take the 529 money to take a baller vacation to Cabo.
Anything Kid #1 doesn't use on her undergrad will be left in there for Kid #2 to use in ten years.
My instructions were pretty clear and you still aren’t following. It’s not that hard. Tequila shots for dayz.
Re: 529 Plan Advice
Posted: Fri May 07, 2021 10:19 am
by jfish26
twocoach wrote: ↑Fri May 07, 2021 8:42 am
jhawks99 wrote: ↑Fri May 07, 2021 8:39 am
I've done my last FAFSA, youngest kid graduates from UK next weekend.
We have agreed to provide funding for her undergrad. She's on her own for any post grad program. So I assume that she'll be headed that way in 4 years if she gets into a PA program.
I think our plan is to say that, circumstances permitting, we will commit to the fully-baked cost of the state school in which we live. Anything more expensive that that is on the kid. Anything less expensive than that becomes available for grad school or moving expenses for a job or whatever.
Re: 529 Plan Advice
Posted: Fri May 07, 2021 12:31 pm
by twocoach
jfish26 wrote: ↑Fri May 07, 2021 10:19 am
twocoach wrote: ↑Fri May 07, 2021 8:42 am
jhawks99 wrote: ↑Fri May 07, 2021 8:39 am
I've done my last FAFSA, youngest kid graduates from UK next weekend.
We have agreed to provide funding for her undergrad. She's on her own for any post grad program. So I assume that she'll be headed that way in 4 years if she gets into a PA program.
I think our plan is to say that, circumstances permitting, we will commit to the fully-baked cost of the state school in which we live. Anything more expensive that that is on the kid. Anything less expensive than that becomes available for grad school or moving expenses for a job or whatever.
My daughter's ACT score was high enough that she could have attended Nebraska tuition free but I blocked that from being an option. Too many high school classmates going there. She needs to learn to meet new people and get out of her comfort zone and it didn't feel like a fifth year with her high school friends would fully allow that. She's getting enough scholarships to KU that her tuition is down to the same as if she was in-state so she'll have plenty to cover her undergrad.
Re: 529 Plan Advice
Posted: Fri May 07, 2021 12:39 pm
by Deleted User 89
tbh, i rarely hung out with my HS classmates as a frosh at KU, even though i went to HS in Lawrence
Re: 529 Plan Advice
Posted: Fri May 07, 2021 12:51 pm
by NewtonHawk11
twocoach wrote: ↑Fri May 07, 2021 12:31 pm
jfish26 wrote: ↑Fri May 07, 2021 10:19 am
twocoach wrote: ↑Fri May 07, 2021 8:42 am
We have agreed to provide funding for her undergrad. She's on her own for any post grad program. So I assume that she'll be headed that way in 4 years if she gets into a PA program.
I think our plan is to say that, circumstances permitting, we will commit to the fully-baked cost of the state school in which we live. Anything more expensive that that is on the kid. Anything less expensive than that becomes available for grad school or moving expenses for a job or whatever.
My daughter's ACT score was high enough that she could have attended Nebraska tuition free but I blocked that from being an option. Too many high school classmates going there. She needs to learn to meet new people and get out of her comfort zone and it didn't feel like a fifth year with her high school friends would fully allow that. She's getting enough scholarships to KU that her tuition is down to the same as if she was in-state so she'll have plenty to cover her undergrad.
Interesting strategy. I mean. I get it, just interesting.
Re: 529 Plan Advice
Posted: Fri May 07, 2021 12:52 pm
by CrimsonNBlue
Make sure she joins this group at KU, plenty of posters here have good things to say.
https://tinyurl.com/2euakafd
Re: 529 Plan Advice
Posted: Fri May 07, 2021 2:47 pm
by twocoach
I'll give that to her as the acceptable pool of potential boyfriends.
Re: 529 Plan Advice
Posted: Fri Jun 17, 2022 12:21 pm
by DrPepper
Proposed Bill to allows transfer of College 529 Savings to Retirement Funds
https://www.insidehighered.com/quicktak ... 4MMXJLcvfk
Bill to Allow Transfer of College Savings to Retirement Funds
By Meghan Brink
June 15, 2022
A bipartisan bill introduced in the Senate Tuesday would allow families to transfer unused funding from college savings accounts, or 529 accounts, without being penalized.
These accounts allow families to save for their children’s educations by investing after-tax income into mutual funds, much like a Roth retirement savings account. Under current law, families whose children decide not to go to college or do not use all of the savings in the account are penalized for withdrawing any unused funds.
“We should encourage parents to save for their family’s future, while recognizing that they can’t always predict what the future holds. Their child might not decide to pursue a higher education,” said a sponsor of the bill, Senator Richard Burr, a Republican from North Carolina and ranking member of the Senate Health, Education, Labor and Pensions Committee.
The College Savings and Recovery Act, also sponsored by Bob Casey, the Democrat from Pennsylvania, would eliminate these penalties and allow families to transfer funding in 529 accounts to a Roth IRA, where the money can be saved for their child’s retirement.
“An early start on saving for retirement can mean the difference between peace of mind and insecurity for retired Americans,” said Casey about the bill.
The bill was previously included in Burr’s 2017 Boost Savings for College Act.
Re: 529 Plan Advice
Posted: Fri Jun 17, 2022 12:24 pm
by jhawks99
It's a good idea. Hopefully, it passes.