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re: 529 Account / Accounts for Child
Posted on 9/13/26 at 4:55 am to 23parker
Posted on 9/13/26 at 4:55 am to 23parker
If you open a Schwab 529, it’s a Kansas 529.
I don’t know about Louisiana, but in SC, you have to use the state-sponsored program to deduct contributions for state income tax purposes. (There is no federal deduction for contributions.)
I don’t know about Louisiana, but in SC, you have to use the state-sponsored program to deduct contributions for state income tax purposes. (There is no federal deduction for contributions.)
Posted on 9/13/26 at 8:54 am to 23parker
Yes you should. Pretty sure your contributions are tax exempt if you open the 529 via your state plan.
Posted on 9/13/26 at 11:53 am to 314stunna
If your state doesn't have an income tax then there might not really be any benefit to staying with an in-state plan. I'm in TX and I was free to shop around.
The 529s are a bit tunnel-visioned. Certainly I hope my kids go to college but I know there's a chance that they won't. Something like the new 530As (Trump accounts) might be worth considering too. More flexibility.
The 529s are a bit tunnel-visioned. Certainly I hope my kids go to college but I know there's a chance that they won't. Something like the new 530As (Trump accounts) might be worth considering too. More flexibility.
Posted on 9/13/26 at 3:24 pm to messyjesse
quote:
You can roll over unused 529 funds to a Roth IRA tax- and penalty-free, up to a lifetime limit of $35,000, if the 529 has been open at least 15 years and the transferred amount was in the account for at least 5 years.
quote:
Qualified 529 expenses generally include tuition and required fees, books and supplies, and room and board (if the student is enrolled at least half-time and the costs don’t exceed the school’s cost-of-attendance). 529 funds can also be used for certain apprenticeship/credentialing costs and student loan repayment up to $10,000 lifetime.
quote:
ou can transfer 529 plan funds to a sibling without tax consequences by doing a plan-to-plan rollover or changing the beneficiary to the sibling. This flexibility allows families to manage educational savings effectively as needs change.
I can use a 529 I created for myself to pay for recertification expenses (over $1k a year) and I can ostensibly use it for paying for multi thousand dollar certification expenses, etc. (ETA: meaning if they need to pay electrician cert maintenance fees, etc. later in life they can use it, as an example.)
With a baby, it's worth contributing to both. It's not hard to drop $1k in each as soon as baby has an SSN. Putting $1k a year in each should be easy, considering the average car payment in the US is $770 a month.
This post was edited on 9/13/26 at 3:29 pm
Posted on 9/13/26 at 6:07 pm to messyjesse
quote:
Something like the new 530As (Trump accounts) might be worth considering too. More flexibility.
More flexibility, but becomes the property of the kid when they turn 18. That’s less than ideal to me.
Posted on 9/13/26 at 9:45 pm to Joshjrn
quote:
property of the kid when they turn 18. That’s less than ideal to me.
You'll know by the time they're 11 or 12 how that is going to work out. My daughter thinks she's driving a G-wagon at Vandy because of her mom.
But at some point, you gotta let consequences be consequences. Mine aren't 15 yet, but I'm already considering not permitting their 529s to be used for educational expenses and converting them to IRAs. Cause ex-wife is "if you want an English degree from Vandy, we'll totally pay for it rather than an in state school," sort of shite. (I ain't paying)
I lose all guilt. Natty guard, reserves, etc are always there. I'd rather pay for journeyman electrician anyway.
Posted on 9/14/26 at 6:43 am to imjustafatkid
This advice seems like it is coming from someone who only sells whole life insurance for a living or has drank too much of the whole life koolaid.
Where the whole lifers’ will get you is they’ll tell you something like
“It’s only $50 dollars a month, by the time sweet little Billy is 18 it will be worth more than what you paid into it, it will have CASH VALUE and growth! Also, you will get protection all those years for your child that you love so dearly”
Then when you run the numbers of the growth on that $50 it’s absolutely garbage.
Where the whole lifers’ will get you is they’ll tell you something like
“It’s only $50 dollars a month, by the time sweet little Billy is 18 it will be worth more than what you paid into it, it will have CASH VALUE and growth! Also, you will get protection all those years for your child that you love so dearly”
Then when you run the numbers of the growth on that $50 it’s absolutely garbage.
Posted on 9/14/26 at 8:04 am to Tiger4life306
I started mine 10 years ago with edward jones. I know ed jones has high fees but the account is up 15% over the 10 years so I am not complaining. I am at his target today, and I have 7 years left so if it doubles....so much the better.
Posted on 9/14/26 at 10:03 am to LemmyLives
quote:
Cause ex-wife is "if you want an English degree from Vandy, we'll totally pay for it rather than an in state school,"
She’s right
Posted on 9/14/26 at 10:04 am to bushwacker
quote:
I started mine 10 years ago with edward jones. I know ed jones has high fees but the account is up 15% over the 10 years
Wait, you are up 15% total over a decade and celebrating that?
Oof
Posted on 9/14/26 at 11:50 am to Mingo Was His NameO
quote:
Wait, you are up 15% total over a decade and celebrating that?
Hopefully that’s annualized.
Posted on 9/14/26 at 1:34 pm to 23parker
A 529 plan is a fantastic way to plan for your payment of a child’s education. I have two daughters and both have benefited from it tremendously. Also, my wife and I have benefited from it.
We chose to do a traditional 529 not through the Louisiana 529 and it paid off for us when we got to private high school. Time both were in high school we were able to use our traditional 529 funds to assist with tuition. I had friends to get the Louisiana 529 and we were unable to utilize those funds. They both you utilized 529 for college and one is still utilizing for grad school. I don’t do many things correctly, but putting that money aside was certainly one of those things I did right. Start saving and never look at it. It’s theirs.
We chose to do a traditional 529 not through the Louisiana 529 and it paid off for us when we got to private high school. Time both were in high school we were able to use our traditional 529 funds to assist with tuition. I had friends to get the Louisiana 529 and we were unable to utilize those funds. They both you utilized 529 for college and one is still utilizing for grad school. I don’t do many things correctly, but putting that money aside was certainly one of those things I did right. Start saving and never look at it. It’s theirs.
Posted on 9/16/26 at 1:40 am to 23parker
Looking into a 529 college savings plan for a 1-year-old through Louisiana START versus Schwab is a great move for long-term planning. Comparing state tax advantages and exploring options like a "Trump account" or savings is a solid parental strategy.
Posted on 9/16/26 at 6:25 am to makersmark1
Use the START plan. Avoid setting it up through a broker like Edward Jones. Brokers will skim a commission off of your monthly contributions. La START does not allow brokers to skim fees. That is why brokers will direct you to other state’s plans, some other states allow brokers to skim.
Absolutely do it yourself. La START has access to the Vanguard total stock market index fund, which is a great place for 529 money.
Absolutely do it yourself. La START has access to the Vanguard total stock market index fund, which is a great place for 529 money.
This post was edited on 9/16/26 at 6:31 am
Posted on 9/16/26 at 5:15 pm to contraryman
quote:
Time both were in high school we were able to use our traditional 529 funds to assist with tuition. I had friends to get the Louisiana 529 and we were unable to utilize those funds.
They have K12 accounts now for private tuition now.
As mentioned in a recent post, you can open the LA 529 directly and they have simple and effective index funds you can invest in. I started with an age based plan, but after 10 years I switched to an index fund. I think I probably would have done better if I just did the index fund at the start. Someone warned us on TD a few years ago that if the stock market has a big correction, and your kid simultaneously hits an age where they sell off securities automatically to invest in safer funds, you could get screwed instead of waiting a year for things to settle out. Not sure if that would happen as stated, but it lead me to switch to an index.
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