529 plan

[k2s]

2 minutes ago, Spartan said:

only federal tax free.

state related 529 plan lo enroll aite..state tax undadu...but like CA lo enroll ayi Boston lo vadkunta ante..CA lo tax kattali.

Are 529 plan contributions tax-deductible?

Much like a Roth IRA, contributions to a 529 plan are post-tax and are not deductible from federal income taxes. However, over 30 states and the District of Columbia offer state income tax deductions or tax credits for contributions to 529 plans, though you may be restricted to investing in your home state's 529 plan in order to claim the benefit.

Funds in a 529 plan grow federal tax-free and will not be taxed when the money is withdrawn for qualified education expenses.

[Spartan]

Just now, k2s said:

Are 529 plan contributions tax-deductible?

Much like a Roth IRA, contributions to a 529 plan are post-tax and are not deductible from federal income taxes. However, over 30 states and the District of Columbia offer state income tax deductions or tax credits for contributions to 529 plans, though you may be restricted to investing in your home state's 529 plan in order to claim the benefit.

Funds in a 529 plan grow federal tax-free and will not be taxed when the money is withdrawn for qualified education expenses.

though you may be restricted to investing in your home state's 529 plan in order to claim the benefit.

ade cheptunna....CA plan teskoni...CA lo chadivite...no state tax...

but Ca plan and studying in other state..u have to pay tax...

[k2s]

8 minutes ago, Spartan said:

though you may be restricted to investing in your home state's 529 plan in order to claim the benefit.

ade cheptunna....CA plan teskoni...CA lo chadivite...no state tax...

but Ca plan and studying in other state..u have to pay tax...

aa tax katte appudu chusukovachu ley man.. kids istam vallu ekkada chadavali antey akkada chaduvutharu. CA lo colleges ki thakkuva emi levu ga... mari bayata velli chadavataniki... close all your eyes and 9 holes and take it anthey.. maa akka kuda idey debate chesindi ... but lately realized that it is always beneficial and peace of mind about kids education. 

[Moon_Walker]

24 minutes ago, k2s said:

aa tax katte appudu chusukovachu ley man.. kids istam vallu ekkada chadavali antey akkada chaduvutharu. CA lo colleges ki thakkuva emi levu ga... mari bayata velli chadavataniki... close all your eyes and 9 holes and take it anthey.. maa akka kuda idey debate chesindi ... but lately realized that it is always beneficial and peace of mind about kids education. 

Dude

 

Do you have any suggestions on good plans?

[k2s]

3 minutes ago, Moon_Walker said:

Dude

 

Do you have any suggestions on good plans?

denver, arizona, new hampshire 
returns and gains baaga untai annaru fidelity odu 

[alpachinao]

4 minutes ago, k2s said:

denver, arizona, new hampshire 
returns and gains baaga untai annaru fidelity odu 

Only cheetizen kids ke na?

Outside of USA edu ki kooda spend checyocha?

[k2s]

1 hour ago, alpachinao said:

Only cheetizen kids ke na?

Outside of USA edu ki kooda spend checyocha?

evvarikaina same

What can a 529 plan be used for?

A 529 plan is an investment account that offers tax-free earnings growth and tax-free withdrawals when the funds are used to pay for qualified education expenses. For college, university and other eligible post-secondary educational institutions, this includes tuition, fees, books, supplies, equipment, computers and sometimes room and board. The IRS also allows tax-free withdrawals of up to $10,000 per year, per beneficiary to pay for tuition expenses at private, public and religious K-12 schools.

[kittaya]

3 hours ago, k2s said:

denver, arizona, new hampshire 
returns and gains baaga untai annaru fidelity odu 

Oka 30k money pediithe after 10 yrs ntha avuthayi

[phatposts]

529 applies to some and not for some. 

This is my take:

If you are making a lot of money and already have maxed our 401k, Backdoor roth and mega backdoor roth (applicable only to some individuals) - then you should be looking at alternate methods to reduce your tax brackets aka AGI. In that case 529 works no matter what. 

Now if you dont make that much (say less than 200 per anum) you may not HAVE to invest in 529 for tax savings unless you want to invest in the kids future. 

While the 529 works for federal tax deductions and tax free growth - the options for which you can use the 529 are limited. If your child does not end up using the 529  for any reason - not going to college, not needing money for college due to merit or other reasons this will become a sweet sin at that time.

I personally would not let the 529 grow beyond 150-200K for each child. Since you can use that money for boarding as well it will come down to that. 

In my personal case I opened an investor account in Charles Schwab and invest the money in that. I add money on a quarterly bases and let it do dollar cost averaging. This will be my version of college fund. 

[k2s]

10 hours ago, kittaya said:

Oka 30k money pediithe after 10 yrs ntha avuthayi

First pettu.. 10 yrs tarvata will talk