re: How much is enough in the 529 accounts?

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I use a UTMA. It does not get the tax advantages or match as a 529, but you can use it on anything relating to the child. Also, the interest is taxed at the child's tax rate. Right now we use it as a savings for college as well as to cover next year's tuition. When the bill comes, we just request that amount to come out. I would like to be able to foot 6 years of college as I think grad school will be necessary, but I am also not trying to kill myself and sacrifice living life for the sake of possibly needing the funds for college.

You can use these funds on anything for the child, tuition, meals, clothes, car, room & board...

Down side to the UTMA, control turns over to the child at 18 (some States it is 21), so it will become their money and can blow it how they want. When in HS we will try to teach them about the value of not blowing the funds on top end cars, hookers & blow, stupid tech... basically the shite we did

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With the exception of a car, every expense you mentioned can be paid using 529 assets tax free.

Also, while the first $1,100 of earnings in a UTMA is actually tax free, and next $1,100 is taxed at the child’s tax rate (Kiddie Tax), any earnings above that are taxed at the parent’s income tax rate.

Additionally, for the purpose of calculating expected financial contribution, and subsequently need based financial aid, UTMA assets are considered assets of the child, and up to 35% of those assets can be included in the expected contribution formula. 529 assets on the other hand, are considered assets of the parent, and are included at a max rate of 5.6%.

Finally, the ”beneficiary” on a UTMA account cannot be changed, because the assets actually belong to the minor. On the other hand, if you have excess funds in one child’s 529 account, you may change the beneficiary of those funds to another child or relative at any time.

The only pro I can think of for a UTMA vs a 529 account is a wider range of investment options in a UTMA, but there are 529 providers with low cost etfs on their platforms these days.

When saving for educational expenses, UTMA accounts are inferior in almost every way to 529 plans.