LA START Program

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Anybody put money into the Louisiana "529 Plan" for their kids.

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I have accounts for both of my children. My checking account is debited each month for contributions. Very easy online setup. Based on your income, the state puts up some money every year called an earnings enhancement. Investment options seem adequate. I have no complaints.

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is there a better option?

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According to the limited research I did, La's is actually one of the nations top 529 plans.

I do have an idiotic question about this. Lets say you've been putting money in there and I don't know,lets say they turn 18, and you have 30,000 in the 529. Your child gets scholarships, TOPS, whatever, and you don't need that much money for their college. Is it strictly for their education or can you pull it out and start an IRA or whatever for your child with it?

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Yes, my children’s grandparents contribute to their 529 accounts and receive the same tax benefits we as parents do.

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Actually, I don't think that is entirely correct.

From the START website:

"Deposits made to an account may be excluded from taxable income reported on the Account Owner's Louisiana tax return, up to
$2,400.00 per year per Beneficiary for single Account Owners and up to $4,800 per year per Beneficiary for Account Owners filing a
joint return. Any unused exclusion may be carried forward to subsequent tax years."


I think only the account owner is eligible to receive the the tax break. You may want to look into that further.