Educate me on 529's | TigerDroppings.com

Posted byMessage
cstev12
LSU Fan
Houston
Member since Mar 2010
615 posts

Educate me on 529's


I've read up on it some but what are the pros and cons of this plan for saving for my son's education?

Are there any other plans that may be better?

Thanks







Back to top
Share:
jimbeam
USA Fan
University of LSU
Member since Oct 2011
27119 posts

re: Educate me on 529's


I'm pretty sure you have to spend it or lose it. AKA spend it all on your kids. if not, it goes to waste

pretty sure






Back to top
yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
64288 posts

re: Educate me on 529's


quote:

I'm pretty sure you have to spend it or lose it. AKA spend it all on your kids. if not, it goes to waste

pretty sure


nah, you just pay tax and penalty if it's spent of anything other than educational expenses.


pros is tax free growth






Back to top
jimbeam
USA Fan
University of LSU
Member since Oct 2011
27119 posts

re: Educate me on 529's


oh ok.

welp, OP, don't listen to me






Back to top
cstev12
LSU Fan
Houston
Member since Mar 2010
615 posts

re: Educate me on 529's


quote:

nah, you just pay tax and penalty if it's spent of anything other than educational expenses.


Would off campus living be considered educational expenses?






Back to top
Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
39944 posts

re: Educate me on 529's


Yes, up to the school certified cost of attendance.

There is a segment for rent, you can't exceed that in 529 withdrawals for that.

Keep in mind that having a 529 plan in a kids name affects their eligibility for need based financial support.



This post was edited on 6/25 at 1:35 pm


Back to top
Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
39944 posts

re: Educate me on 529's


To give you an idea, LSU allows for a budget of 7600 a regular semester for off campus living in their current CoA





Back to top
RebelOP
Ole Miss Fan
Misty Mountain Top
Member since Jun 2013
8048 posts

re: Educate me on 529's


Also, if a kid gets a scholarship you can pull up to the value of the scholarship, out and just pay taxes on the gains. There wouldn't be a penalty.





Back to top



Back to top