https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Fri, 05 Jun 2026 05:06:14 +0000 https://boards.hellobee.com/topic/429-college-savings#post-1927143 Mon, 03 Nov 2014 12:01:18 +0000 BandDmommy 1927143@https://boards.hellobee.com/ <p>We have 3. One through VA, USAA and one with Merrill Lynch. DH did all the research. The USAA is the one my parents contribute too. We contribute to the other 2. </p> https://boards.hellobee.com/topic/429-college-savings#post-1927122 Mon, 03 Nov 2014 11:48:19 +0000 aegie 1927122@https://boards.hellobee.com/ <p>@T.H.O.U.: my cpa told us to squirrel money away into our IRA instead of a 529 since it's more important for us to have a retirement account for our future. We were told we can withdraw penalty free for higher education, so that's what we're doing. </p> <p>I also have a Coverdell ESA account which maxes out at $2000 contribution per year BUT the good part is anyone can contribute to it so my parents contribute to it instead of christmas gifts. You can only contribute till they're 18 but you can also use it for k-12 or college expenses. Which is nice. </p> https://boards.hellobee.com/topic/429-college-savings#post-1927078 Mon, 03 Nov 2014 11:17:31 +0000 PurplePumps 1927078@https://boards.hellobee.com/ <p>@AmandaB8: @T.H.O.U.: I'm not sure about the education part, but you can withdraw your contributions at any time tax and penalty free. Only earnings are subject to tax/penalties. </p> https://boards.hellobee.com/topic/429-college-savings#post-1927055 Mon, 03 Nov 2014 11:02:26 +0000 Mrs. High Heels 1927055@https://boards.hellobee.com/ <p>We went with UESP in Utah since the one's offered in California doesn't give us any additional tax breaks. Plus everything @lawbee11: stated! </p> https://boards.hellobee.com/topic/429-college-savings#post-1927016 Mon, 03 Nov 2014 10:39:22 +0000 mediagirl 1927016@https://boards.hellobee.com/ <p>We have the one for our state. We chose it because it was easy to remember. :) </p> https://boards.hellobee.com/topic/429-college-savings#post-1926982 Mon, 03 Nov 2014 10:23:37 +0000 LBee 1926982@https://boards.hellobee.com/ <p>@T.H.O.U.: @AmandaB8: T.H.O.U is correct. There are other ways to avoid the penalty (first time home purchase, medical expenses, etc), but education is one. </p> <p>There are income limitations to contributing to a Roth IRA as well as you are capped at $5,500 per year. The 529 does not have these limitations or caps. There are pros and cons to both. I usually lean towards 529's for my clients, but that is only because I'd like them to be taking advantage of both if financially feasible (fully funding a Roth IRA for their personal retirement and then putting away money in a 529 for their child's education). </p> <p>I would investigate your state's 529 and see if there are any tax benefits to investing with it. I would recommend vetting the 529, though, as the tax benefits are usually not huge monetarily and having a well performing plan (and one that has a good reputation) is of the utmost importance. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926976 Mon, 03 Nov 2014 10:18:36 +0000 AmandaB8 1926976@https://boards.hellobee.com/ <p>We have a 529, but we just use it for family mostly. Any money that DD gets, goes straight into it. We only contribute $50 a month right now - we're still working on other financial goals. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926969 Mon, 03 Nov 2014 10:14:49 +0000 T.H.O.U. 1926969@https://boards.hellobee.com/ <p>@AmandaB8: no the way i understood it was that the only other way to withdraw money from the Roth before 59 1/2 without the 10% penalty would be if it was for education expenses. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926968 Mon, 03 Nov 2014 10:12:22 +0000 AmandaB8 1926968@https://boards.hellobee.com/ <p>@T.H.O.U.: A Roth IRA is a great idea, but only if you'll be 59 1/2 or older before your kid is in college. Also, keep in mind that any withdrawls are still considered income, so if you're relying on financial aid in college, it can screw you. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926678 Sun, 02 Nov 2014 23:59:52 +0000 lady grey 1926678@https://boards.hellobee.com/ <p>@Mrs. Chipmunk: we signed up for the GET program. We choose to pay an initial lump sum and are now contributing a small monthly amount that feels do-able and not too overwhelming. It was easy to sign up and has been a smooth process so far. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926605 Sun, 02 Nov 2014 21:17:29 +0000 Espion 1926605@https://boards.hellobee.com/ <p>We have ours through USAA and I think they preferentially use the Nevada plan. </p> <p>Many states will incentivize if your child goes to a state school, but how can you guarantee that? Others will give you further tax breaks, but we don't have a state income tax, so it didn't matter to us. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926572 Sun, 02 Nov 2014 20:50:00 +0000 catlady 1926572@https://boards.hellobee.com/ <p>We did the Vanguard one (Nevada). There was no tax benefit to going with our state's plan. We got caught up doing research on the other states' plans but eventually we just bit the bullet and chose one based on some recommendations online and also the fact that I already have a Vanguard IRA. We also opened a mutual fund separately so we are not putting everything in the 529. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926551 Sun, 02 Nov 2014 20:37:18 +0000 PurplePeony 1926551@https://boards.hellobee.com/ <p>We have a GET for DD but are planning to hedge our bets and open a 529 as well. Probably the Vanguard/Nevada one, since I have an IRA at Vanguard already and have been happy with them. I don't fully trust either mechanism so I'm hoping that if we split her college savings between the two types of accounts, we'll come out okay in the end. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926535 Sun, 02 Nov 2014 20:08:37 +0000 lawbee11 1926535@https://boards.hellobee.com/ <p>I did a lot of research and we ended up going with UESP (Utah Educational Savings Plan). There weren't any tax advantages to opening one in my home state. There is no monthly minimum contribution and the fees are really low.</p> <p>ETA: Here's a good article: <a href="http://m.huffpost.com/us/entry/5699191" rel="nofollow">http://m.huffpost.com/us/entry/5699191</a> </p> https://boards.hellobee.com/topic/429-college-savings#post-1926511 Sun, 02 Nov 2014 19:47:57 +0000 Adira 1926511@https://boards.hellobee.com/ <p>I don't have any real advice. I asked my mentor at work who his 529s are through and then just followed suit. Although there aren't a ton of options in my state anyway. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926502 Sun, 02 Nov 2014 19:43:55 +0000 T.H.O.U. 1926502@https://boards.hellobee.com/ <p>I just read that a Roth IRA can be used for college expenses. Anyone look into that instead of a 529 </p> https://boards.hellobee.com/topic/429-college-savings#post-1926500 Sun, 02 Nov 2014 19:42:52 +0000 SeptMomma12 1926500@https://boards.hellobee.com/ <p>My husband did a lot of research and we went with the Maryland 529 plan. We live in NJ, but they don't offer any incentives and the NJ plan wasn't rated very well. Definitely check to see if your state has any incentives for using theirs. My parents are in NY and opened him a grandparents account because there were good tax incentives. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926462 Sun, 02 Nov 2014 18:45:47 +0000 Mrs. Lion 1926462@https://boards.hellobee.com/ <p>I thought this article was really helpful. We have an ESA, and we found our investment person using Dave Ramsey's ELP referral program (which basically just means they are local people who have been endorsed by him because they follow his principles when giving advice). </p> <p><a href="http://theartofsimple.net/529s-and-esas-%E2%80%94-the-nitty-gritty-of-saving-for-college/" rel="nofollow">http://theartofsimple.net/529s-and-esas-%E2%80%94-the-nitty-gritty-of-saving-for-college/</a> </p> https://boards.hellobee.com/topic/429-college-savings#post-1926458 Sun, 02 Nov 2014 18:38:43 +0000 sunny 1926458@https://boards.hellobee.com/ <p>WA has the GET prepaid tuition plan. We decided against it and opened a 529 instead. We chose the Nevada plan based on fees because it was through Vanguard. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926448 Sun, 02 Nov 2014 18:30:58 +0000 yoursilverlining 1926448@https://boards.hellobee.com/ <p>We have two 529 accounts for LO; the first is through our home state because they gift $500 to every baby born in the state if you open a 529 here . You can open a 529 using any state's system/plan and some are better than others. My MIL and DH opened the second, through her investment guy and I can't remember what state he selected, but it's not a state either of us live in; it's just a state with a better plan than other states. Both were extremely easy to set up, and I know there is good info online comparing state plans. </p> https://boards.hellobee.com/topic/429-college-savings#post-1926434 Sun, 02 Nov 2014 18:16:55 +0000 Mrs. Chipmunk 1926434@https://boards.hellobee.com/ <p>What did you choose and why? Is there a good resource I can start to research with before I approach an investment professional? </p>