We are going to open a 529 plan for our son. I'm going to do some research into the best state to open the plan (you can open them wherever and some states have better rates than others). If you opened one recently, where did you open it?
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We are planning on doing so once our LO arrives. In Maryland, you can write off $2500 per year, So I think we might just go with that one, although I'm interested to see what others have done!
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I might have my states wrong, but I **think** a friend said you only need $50 to open one in Alaska.
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I would worry more about finding a plan with the best investment options. I work in private wealth and we most frequently use the Alliance Bernstein SC plan and the Fidelity 529 plan which I *think* is out of VA.
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Yes! Our financial advisor recommended opening one up with T. Rowe Price (I believe it's Alaska's program). You can open it with as little as either a $250 deposit or $50 monthly auto-debit. I opened one up for my baby daughter, as well as for my nieces as gifts.
That way, we can give small gifts (and they don't really need any more toys!), and instead make deposits for birthdays and holidays. I like this idea for our daughter in the future atter seeing kids in our family get way too many toys as gifts. I talked this over with my sister first and she loved this idea. Anyone can make deposits too, like grandparents and other family members. Hope this helps!
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I've looked into these in the past. Can it adversely affect the parents tax situation? Or hinder loan eligibility for the child in the future? How does it work if you buy one from a state you don't live in?
I find 529s so confusing I'm thinking of just opening a high yield savings account for LO.
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@regberadaisy: 529s are covered by the gift tax rules so you'll only have tax implications if you contribute more than 13,000 a year. Yes it may have an effect on financial aid but I think it's better for your child to have readily available interest free money to pay for college than to hope they will get a loan that will have to be paid back with interest.
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We have the Utah uesp plan. It's one of the highest rated programs in the country. I'll try and link.
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We have the Utah uesp plan. It's one of the highest rated programs in the country. I'll try and link. http://www.uesp.org/ (iPhone and all)
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@Mrs. Jacks: Sweet, thanks! I did a little research and that plan and the Michigan plan seemed to be the best (Utah's more aggressive), so I think we are going to go w/ the Utah plan.
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We went with Ohio's plan as it was highly rated at the time and had a bonus for opening.
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We did! Also Ohio's.
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@winniebee: woo hoo !
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