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Started By
Message
START Program for grade school
Posted on 8/24/18 at 6:04 am
Posted on 8/24/18 at 6:04 am
I have 2 kids in private school (K2 & K4). Though the tax changes this year now allow for tuition to be paid out of START accounts for grade school, I understand that kindergarten is the lowest grade that counts, and it’s limited to $10k.
Since I’ll have 1 in kindergarten next year, I need to go ahead and deposit that share of tuition into his START account in 2018 to cover and pay his August 2019 tuition (when he starts kindergarten), right?
Has anyone done this for this year? It seems straight-forward enough, am I missing anything?
Since I’ll have 1 in kindergarten next year, I need to go ahead and deposit that share of tuition into his START account in 2018 to cover and pay his August 2019 tuition (when he starts kindergarten), right?
Has anyone done this for this year? It seems straight-forward enough, am I missing anything?
This post was edited on 8/24/18 at 6:05 am
2
Posted on 8/24/18 at 9:40 am to NaturalBeam
Have not done it yet. Both of mine are still under 5.
Sounds like they changed the rules to allow you to use START funds for K-12 but then didn't establish the guidelines. They only allow a 1 time withdrawal of a max of $10K for 2018. I assume the intention is to have actual guidelines in place for 2019.
Sounds like they changed the rules to allow you to use START funds for K-12 but then didn't establish the guidelines. They only allow a 1 time withdrawal of a max of $10K for 2018. I assume the intention is to have actual guidelines in place for 2019.
Posted on 8/24/18 at 12:19 pm to NaturalBeam
My question is what is the benefit of depositing the money in the start account in that scenario? If you make 100k+ the match is only 2%. Is there another benefit I am missing?
Posted on 8/24/18 at 12:36 pm to Creamer
There is no match for grade school version of this account. No deduction either. The only benefit now that I see is to take some money tax free from an existing account.
They claim that they could not add the match or deduction in the last sessions because of the odd/even year tax laws bullshite. If the governor wanted it he could have put it in the Call but that tax and spend MF didn't want to do that. I'm not holding my breath for them to add benefits next year that make this type of account worth anything other than a tax free investment vehicle that you have to use for elementary and high school.
They claim that they could not add the match or deduction in the last sessions because of the odd/even year tax laws bullshite. If the governor wanted it he could have put it in the Call but that tax and spend MF didn't want to do that. I'm not holding my breath for them to add benefits next year that make this type of account worth anything other than a tax free investment vehicle that you have to use for elementary and high school.
Posted on 8/24/18 at 1:39 pm to fatboydave
Thanks - I was under the impression I could put $10k in there, deduct that $10k from my income, and then pay for school out of that. Sounds like that is not the case.
Posted on 8/24/18 at 2:07 pm to NaturalBeam
Do you have a Start acct currently?
Posted on 8/26/18 at 1:25 am to NaturalBeam
That’s what I thought too, but apparently ole Governor honor code squashed it and there is not a lot of benefit with this.
Posted on 8/26/18 at 9:29 pm to NaturalBeam
quote:
Thanks - I was under the impression I could put $10k in there, deduct that $10k from my income, and then pay for school out of that. Sounds like that is not the case
Yeah, not for this K-12 program.
HOWEVER, you CAN deduct up to 5K per year, per child, of private school tuition for K-12 education under existing LA law that has been around for a while. So you do still get that.
This K-12 plan only makes sense if you are going to use it for an accumulation vehicle. Let's say when grandkid is born, granddad puts 50K into an account. It will grow tax free and come out tax free (up to 10K a year, per child). If granddad instead put the 50K at birth into a retail account, or even an UTMA account, there would be taxes owed on any income from that account.
Posted on 8/26/18 at 9:30 pm to fatboydave
quote:
They claim that they could not add the match or deduction in the last sessions because of the odd/even year tax laws bullshite. If the governor wanted it he could have put it in the Call but that tax and spend MF didn't want to do that. I'm not holding my breath for them to add benefits next year that make this type of account worth anything other than a tax free investment vehicle that you have to use for elementary and high school.
Correct.
Posted on 9/2/18 at 5:52 pm to LSUFanHouston
Hold up, are you all saying the State isn't giving the match anymore?
According to their website, they match your deposits according to your AGI as follows:
Because I was thinking the advantage would be getting the match before withdrawing and paying the tuition.
According to their website, they match your deposits according to your AGI as follows:
quote:
Reported AGI Rate Earnings Enhancement
$0 to $29,999 14%
$30,000 to $44,999 12%
$45,000 to $59,999 9%
$60,000 to $74,999 6%
$75,000 to $99,999 4%
$100,000 and above 2%
Because I was thinking the advantage would be getting the match before withdrawing and paying the tuition.
Posted on 9/3/18 at 11:54 am to TDFreak
quote:
Hold up, are you all saying the State isn't giving the match anymore?
According to their website, they match your deposits according to your AGI as follows:
The match still exists for the "traditional" Start accounts.
For these new Start K-12 accounts, that can be used for K-12 tuition and expenses, they are NOT doing the match.
At this time you are unable to setup a new Start K-12 account... supposed to be available soon.
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