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Louisiana START Program for Masters question
Posted on 6/25/17 at 12:57 pm
Posted on 6/25/17 at 12:57 pm
I just learned about the Louisiana START program and have a question for the community. My wife is currently half way through her Master's in Education program at LSU Shreveport's online program. She has roughly $6500 left in expenses.
So, I am thinking of opening a START account for her to use for paying her educational expenses. LA allows for married couples to contribute up to $4800 per year and deduct that amount from gross income. Additionally, LA will provide a 4% match for the yearly contributions, and the account will accrue interest.
It seems like an easy way to make some money, but since she is graduating next June, I wanted to check and see if it worth doing or if I am overlooking something.
So, I am thinking of opening a START account for her to use for paying her educational expenses. LA allows for married couples to contribute up to $4800 per year and deduct that amount from gross income. Additionally, LA will provide a 4% match for the yearly contributions, and the account will accrue interest.
It seems like an easy way to make some money, but since she is graduating next June, I wanted to check and see if it worth doing or if I am overlooking something.
1
Posted on 6/25/17 at 2:04 pm to saints5021
I think the recipient of the funds needs to be a minor when the account beneficiary begins.
Posted on 6/25/17 at 3:26 pm to Golfer
Not true.
OP, I use the account just as you described. I checked with the program and this is completely legitimate and leads to a bit of extra cash.
You can actually consider "room and board" in the expenses as long as she's enrolled half time. The official figures you can use are published in your school's cost of attendance figure.
I'm able to move about $20k into the account each year and withdraw the next year WITH THE MATCH. Finally a state handout for the middle class...
I don't feel guilty using it this way after all the taxes I pay. It's like I give the state a slice of pie and they give me a bite back.
OP, I use the account just as you described. I checked with the program and this is completely legitimate and leads to a bit of extra cash.
You can actually consider "room and board" in the expenses as long as she's enrolled half time. The official figures you can use are published in your school's cost of attendance figure.
I'm able to move about $20k into the account each year and withdraw the next year WITH THE MATCH. Finally a state handout for the middle class...
I don't feel guilty using it this way after all the taxes I pay. It's like I give the state a slice of pie and they give me a bite back.
Posted on 6/25/17 at 3:56 pm to cfa626
Can you setup at 529 for yourself?
Posted on 6/25/17 at 6:53 pm to Golfer
How does the room and board work in that case? Do you just use the allotment for the particular school and withdraw? My wife is considered part time, so she would apply.
Posted on 6/25/17 at 8:47 pm to Golfer
Yes you can. They have different categories that qualify for the match and self is a category.
It is literally free money to move money from one account to another. The protection plan or whatever it is has no risk.
It is literally free money to move money from one account to another. The protection plan or whatever it is has no risk.
Posted on 6/25/17 at 8:49 pm to cfa626
Yep amazing program. FYI the match is calculated off the yearly deposits not balance.
Posted on 6/25/17 at 9:00 pm to eng08
Can't you write of tuition anyway?
Posted on 6/26/17 at 8:36 am to Rust Cohle
Not sure how it plays with the tax deduction for tuition, but your contribution to the account is tax deductible for your LA taxes.
On top of that depending on your income the state does a matching contribution so it kyle but be a better option to take state deduction and match.
On top of that depending on your income the state does a matching contribution so it kyle but be a better option to take state deduction and match.
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