anyone with 529 experience?

[nycdisneygal]

Moved from NYC to CT but still work in NY state. Started a 529 for my pre K kid while in NY this year. Need to start one for my 13 year old (have been paying 50K per year for private school so now will put that into her account each year). Trying to figure out advantage to the CT vs NY one. I can still get tax benefits for either one right? Anyone researched these? Is it better to do where I work or where I live?
I have no idea what to do here and dont know many people with 529s...
I feel very stupid about this.

 

[nycdisneygal]

Well maybe i can do CT for 1 and NY for the other

 

[mjkacmom]

We are in NJ and our 529’s have always been in NY. My DH is a CFP so I just leave these decisions up to him.

 

[nycdisneygal]

We are in NJ and our 529’s have always been in NY. My DH is a CFP so I just leave these decisions up to him.

my DH knows nothing about finances!
So you dont do the tax deductioncorrect?

 

[DLgal]

529s don't need to be state specific. We opened up Upromise 529s when the kids were born. I think it's technically Nevada based, but we live in CA. I only think it matters if your state gives a state tax break on contributions. Mine doesn't, so it didn't matter where we opened it up. If your state of residence gives tax breaks on them, you would need to open one up that is managed in your home state.

Also, are you aware that you can use 529s for K-12 private school tuition? That's a relatively new development, but if you plan to send your youngest to private school, you can put those funds into the 529.

 

[Mufasa2018]

Stay with the NY plan for your 13yo. I don’t live in NY but chose NY to open my 529. And yes you can now use them for private school which is nice. Connecticut was not among the best/lowest fee plans.

 

[MomToOne]

I live in California, but use the Utah one because California does not have a state tax benefit for 529s. That is the primary reason to go with the one for your state - to get any state tax benefit; most states only allows a state tax deduction if you contribute to that state's plan. But not all states have tax deductions for them, and a few states allow a deduction regardless of the state plan you use. In those cases, just find the one with the best fees/expenses/investment performance.

The info I found (which was a year old and could be out of date) says you get a CT state tax deduction only if you contribute to the CT plan. You can transfer your NY one to CT, or just keep it and open a new CT one for that child. It's OK to have multiple 529s for a single beneficiary, it's just a bit more of a pain to manage,

 

[nycdisneygal]

529s don't need to be state specific. We opened up Upromise 529s when the kids were born. I think it's technically Nevada based, but we live in CA. I only think it matters if your state gives a state tax break on contributions. Mine doesn't, so it didn't matter where we opened it up. If your state of residence gives tax breaks on them, you would need to open one up that is managed in your home state.

Also, are you aware that you can use 529s for K-12 private school tuition? That's a relatively new development, but if you plan to send your youngest to private school, you can put those funds into the 529.

Yes thats newer and we dont plan on private school again at the moment!
We have already spent almost 350 K on schooling for 13 year old!

 

[yeahdisney]

We live Illinois and use Michigan 529 plan.

 

[amcnj]

Some states were touted as having better investment options and/or lower fees. This was a while back so I am not sure if this still holds. Also check if there are any other state benefits, even if they don’t offer a state tax deduction. My state’s plan Included a scholarship for in-state schools, as long as you contributed over a certain amount, and the total of the scholarship depended on how many years you contributed that amount or more.

 

[runwad]

I'm a big fan of Clark Howard, here's is his guide to 529's, it should help you https://clark.com/education/clarks-529-plan-guide/

 

[MrsTomMorrow14]

Yeah we live in louisiana but my kids 529 is for USAA.

 

[LuvOrlando]

I did the state one in PA because it’s tax free, USAA didn’t offer to explain they weren’t tax free so you need to ask specifically to find out When looking.

Just a FYI, unless there has been a change I think you can slide money between siblings so use money in the youngest account to supplement older child’s if you don’t have time to catch up fully and then make it up in the reverse if you need. Most of this can be found online but it’s tough to know what you are looking for without a lot of work.

 

[tcufrog]

529s don't need to be state specific. We opened up Upromise 529s when the kids were born. I think it's technically Nevada based, but we live in CA. I only think it matters if your state gives a state tax break on contributions. Mine doesn't, so it didn't matter where we opened it up. If your state of residence gives tax breaks on them, you would need to open one up that is managed in your home state.

Also, are you aware that you can use 529s for K-12 private school tuition? That's a relatively new development, but if you plan to send your youngest to private school, you can put those funds into the 529.

Yes, you can use money from a 529 for k-12 private school but the amount isn't unlimited. I always check on the amount with my accountant before I do it every year. After I do that I make sure to replace the money in the 529.

 

[_19disnA]

^^ There are many websites that describe the 529 program. Also state-level sites for aspects specific to where you live. That is where I would start.

 

[3boymthr]

Are you looking at a 529 or prepaid tuition plan? My kids 529s are not state specific. The state of MA does offer a 529 but theirs were set up separate from the state plan.(it’s through Edward Jones). On the other hand their Prepaid tuition is tied to the state of Massachusetts. Their tuition is 100% paid at a selection of Massachusetts colleges (at Community college they are at @250%) at various others it’s prepaid at varying percentages depending upon the cost of the school at the time of the investment. ETA They have the option to opt out of the plan and convert to standard 529 if they elect to go to a school not on the list. In addition they can elect to not go to school and withdraw the funds at 26. In a weird twist two of my three children have opted out of the college path. One is shooting for a military career and the other plans to be an electrician. He will use his 529 funds to cover the costs of his vocational classes and licensing.