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Started By
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Louisiana 529b K12
Posted on 2/4/19 at 9:25 am
Posted on 2/4/19 at 9:25 am
Who is using next year? Just looking to open a dialogue. Looks like $4800 would be max the wife and I contribute yearly. It’s my understanding that amount would be tax deductible....sound right?
Gonna open one up soon. If I drop $4800 in it, that money would be available for 2019-20 school year penalty free? Obviously we would do that for the tax deduction. I guess if isn’t tax deductible, it’s a huge waste of time....I’m rambling. Who can enlighten us?
Thanks in advance.
Gonna open one up soon. If I drop $4800 in it, that money would be available for 2019-20 school year penalty free? Obviously we would do that for the tax deduction. I guess if isn’t tax deductible, it’s a huge waste of time....I’m rambling. Who can enlighten us?
Thanks in advance.
Posted on 2/4/19 at 9:52 am to BehindtheWoodshed
It's tax deductible but only for Louisiana taxes. And you don't get to double up on the tax deduction for Louisiana taxes that is already available for K-12 tuition payments of $5,000 per child.
The only real benefit of this plan is for people that can contribute money right after birth of the child, and the money will grow tax-free and can be taken out tax-free as well.
Popping the money in and taking it out a few month later isn't going to do much for most people unless you happen it nail something in the market.
The only real benefit of this plan is for people that can contribute money right after birth of the child, and the money will grow tax-free and can be taken out tax-free as well.
Popping the money in and taking it out a few month later isn't going to do much for most people unless you happen it nail something in the market.
Posted on 2/4/19 at 10:44 am to LSUFanHouston
Do you have to have a child to start one? I thought you could open one prior to birth and then change beneficiary from yourself to the child.
Posted on 2/4/19 at 10:56 am to lighter345
quote:
Do you have to have a child to start one? I thought you could open one prior to birth and then change beneficiary from yourself to the child.
You can, but some people might not be willing to do this if they don't actually have kids yet. Because if you don't have kids, then you either need to pull the money out (earnings would be taxed, plus potential penalty) or gift the plan to someone with a kid.
Posted on 2/4/19 at 11:30 am to LSUFanHouston
quote:
and can be taken out tax-free as well.
when? is there a deadline it has to stay in a fund until used for college? taxes and penalties before hand? i am thinking of opening one also for my daughter.
Posted on 2/4/19 at 11:39 am to BehindtheWoodshed
quote:
I guess if isn’t tax deductible,
it is but just for state which is why i am weighing my options also.
Posted on 2/4/19 at 11:53 am to LSUFanHouston
I do. 8yrd old. Almost certainly making a move from public to private.
Posted on 2/4/19 at 12:13 pm to Fat Bastard
quote:
when? is there a deadline it has to stay in a fund until used for college? taxes and penalties before hand? i am thinking of opening one also for my daughter.
No deadline per se. But if you pull it out and use the money for non-qualifying expenses, you will owe tax and penalty on the earnings portion of the withdrawal.
What some people will do, if it turns out they don't need the money, is change the beneficiary. Especially if the grandparents own the accounts, they will just change beneficiary to other grandkids, etc.
Posted on 2/5/19 at 12:28 pm to BehindtheWoodshed
The LA K-12 plan is not currently deductable for state income tax like the Higher Ed plan. That may change after this year's legislative session.
This post was edited on 2/5/19 at 12:30 pm
Posted on 2/5/19 at 5:52 pm to Dirty D
quote:
The LA K-12 plan is not currently deductable for state income tax like the Higher Ed plan
Don't see the benefit until a match or deduction is available.
Posted on 2/5/19 at 6:51 pm to Dirty D
Tax free growth- but that isn’t a big deal if you are looking at it as a short term holding account.
Posted on 2/6/19 at 2:07 pm to BARNEYSTINSON
Exactly. The tax free growth benefit is the reason you should contribute to either 529 plan. If you have younger kids that you know are going to private high school, it is a tremendous opportunity.
Posted on 2/6/19 at 3:24 pm to Dirty D
I will have a kid in the next few months. Should i look further into this?
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