- My Forums
- Tiger Rant
- LSU Score Board
- LSU Recruiting
- SEC Rant
- SEC Score Board
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Savings accounts for newborns
Posted on 10/7/25 at 8:45 pm
Posted on 10/7/25 at 8:45 pm
What kind of savings accounts do yall have setup for your kids? We are having our first kid in December and trying to plan out contributions/accounts to open at that time.
Obviously we will open a 529, but how else are yall saving for your kids futures? How much do you aim to have in the 529 by the time they go to college?
Obviously we will open a 529, but how else are yall saving for your kids futures? How much do you aim to have in the 529 by the time they go to college?
7
Posted on 10/7/25 at 8:46 pm to reds on reds on reds
Avoid the LA 529 for the time being.
Posted on 10/7/25 at 8:47 pm to meeple
Yeah I've been reading through that thread.. I'll probably just open one through Fidelity
Posted on 10/8/25 at 6:26 am to reds on reds on reds
I use a custodial account which allows me to invest for my kids and the first $1300 or so in annual earnings (gains & dividends) is tax free until age 18
I believe it's called a umta
I believe it's called a umta
Posted on 10/8/25 at 10:44 am to reds on reds on reds
For simplicity sake, if you are doing a 529 already, nothing wrong with your standard high yield savings account. Not flashy or anything but easy and consistent.
If you are looking at more of an investment account, UGMA/UTMA account would probably be the route. I do believe these accounts are factors when applying for financial aid (though sounds like that won't be an issue here), just more of an fyi.
Can do a custodial Roth IRA when the child is old enough to start doing work (like babysitting, mowing lawn, or actual job etc). Little more work and would need to keep a log of their earned income, but its a pretty good way to go if you are wanting this to be more of a retirement headstart for them and not something for like right when they become an adult.
If you are looking at more of an investment account, UGMA/UTMA account would probably be the route. I do believe these accounts are factors when applying for financial aid (though sounds like that won't be an issue here), just more of an fyi.
Can do a custodial Roth IRA when the child is old enough to start doing work (like babysitting, mowing lawn, or actual job etc). Little more work and would need to keep a log of their earned income, but its a pretty good way to go if you are wanting this to be more of a retirement headstart for them and not something for like right when they become an adult.
Posted on 10/8/25 at 10:48 pm to reds on reds on reds
Watch out with the UTMA accounts as your child will get the money at the age of transfer and can do whatever they want with it (bad if he/she is financially irresponsible). Look at Vanguard ETF (VOO). Put it in your name and your child as the beneficiary.
Posted on 10/8/25 at 11:40 pm to lilyankems
I add a few bucks a week to a UTMA acct at etrade, invested in growth funds and tech. Figure with a couple grand per year my kid will have about $100k when they graduate not restricted to school.
Posted on 10/9/25 at 9:00 am to reds on reds on reds
529 and then roll $35K to Roth IRA . That's the best approach with the updated legislation.
We've been fortunate to be able to front load our contributions. We now have a nest egg that can "coast" into the amount we plan to have for education.
We don't have an exact figure but we a targeting a ballpark of $200K.
We've been fortunate to be able to front load our contributions. We now have a nest egg that can "coast" into the amount we plan to have for education.
We don't have an exact figure but we a targeting a ballpark of $200K.
Posted on 10/9/25 at 9:15 am to reds on reds on reds
Sending your kid to the patch at 18 is free and they get an education on life
They call it a 529 for the 529 genders they learn to identify as at lsu
They call it a 529 for the 529 genders they learn to identify as at lsu
Posted on 10/9/25 at 9:48 am to lynxcat
quote:
529 and then roll $35K to Roth IRA . That's the best approach with the updated legislation.
The 529 has to be open for 15 years before you can do this though, right?
Posted on 10/9/25 at 9:50 am to GoCrazyAuburn
And the $35k doesn’t roll. You can only move up to thr Roth ira contribution amount each year and it counts as the Roth contribution. Still a good outlet for the funds but not a rollover.
Posted on 10/9/25 at 12:44 pm to reds on reds on reds
Congratulations and great questions! You're doing better than most thinking ahead!
The Louisiana 529 is great (minus the current issues). Depending on your employment and/or if you have a side-LLC, you can look into qualifications for a custodial IRA. This usually benefits business owners or self-employed individuals who go through a LLC.
Both offer tax benefits, but starting with the 529 max for deduction is the best advice once you get the child's social security number.
The Louisiana 529 is great (minus the current issues). Depending on your employment and/or if you have a side-LLC, you can look into qualifications for a custodial IRA. This usually benefits business owners or self-employed individuals who go through a LLC.
Both offer tax benefits, but starting with the 529 max for deduction is the best advice once you get the child's social security number.
Posted on 10/9/25 at 7:13 pm to Tigerstark
How it works
This change came via SECURE 2.0 Act (U.S. federal law) and became effective Jan. 1, 2024. ?
Here are the key rules:
• The 529 account must have been in existence for at least 15 years for that beneficiary before you roll funds into a Roth IRA. ?
• The funds to be rolled over must have been in the 529 for at least 5 years (i.e., contributions + earnings from more recent than 5 years aren’t eligible). ?
• The rollover must go into a Roth IRA in the name of the beneficiary of the 529 (you can’t roll into your Roth IRA unless you are also the beneficiary). ?
• The amount rolled in a given year is subject to the annual Roth IRA contribution limit for that beneficiary (for 2025, $7,000 if under age 50; $8,000 if 50+). ?
• There is a lifetime cap of $35,000 per beneficiary that can be rolled from a 529 into a Roth IRA. ?
• The beneficiary must have earned income at least equal to the amount contributed (rolled over) in that year. (“Taxable compensation” rule for IRAs applies) ?
• The rollover must be done via direct trustee-to-trustee transfer (i.e., you can’t withdraw from the 529 and then separately contribute into the Roth; doing that incorrectly risks penalties). ?
• Important: usual Roth IRA income-phase-out limits do not apply to these 529 ? Roth rollovers. So even someone whose MAGI is too high for normal Roth contributions may benefit. ?
• State tax rules may differ: some states might not treat the rollover as fully tax-free for state income tax or might recapture state tax breaks given for 529s.
This change came via SECURE 2.0 Act (U.S. federal law) and became effective Jan. 1, 2024. ?
Here are the key rules:
• The 529 account must have been in existence for at least 15 years for that beneficiary before you roll funds into a Roth IRA. ?
• The funds to be rolled over must have been in the 529 for at least 5 years (i.e., contributions + earnings from more recent than 5 years aren’t eligible). ?
• The rollover must go into a Roth IRA in the name of the beneficiary of the 529 (you can’t roll into your Roth IRA unless you are also the beneficiary). ?
• The amount rolled in a given year is subject to the annual Roth IRA contribution limit for that beneficiary (for 2025, $7,000 if under age 50; $8,000 if 50+). ?
• There is a lifetime cap of $35,000 per beneficiary that can be rolled from a 529 into a Roth IRA. ?
• The beneficiary must have earned income at least equal to the amount contributed (rolled over) in that year. (“Taxable compensation” rule for IRAs applies) ?
• The rollover must be done via direct trustee-to-trustee transfer (i.e., you can’t withdraw from the 529 and then separately contribute into the Roth; doing that incorrectly risks penalties). ?
• Important: usual Roth IRA income-phase-out limits do not apply to these 529 ? Roth rollovers. So even someone whose MAGI is too high for normal Roth contributions may benefit. ?
• State tax rules may differ: some states might not treat the rollover as fully tax-free for state income tax or might recapture state tax breaks given for 529s.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News