W*N
发帖数: 1354 | 1 We are thinking of starting a 529 college saving plan for our child in New
Jersey, any one has experience with it? Is there any special tax advantage
with it?
Any good institution recommendations? | W*N
发帖数: 1354 | 2 up
【在 W*N 的大作中提到】
: We are thinking of starting a 529 college saving plan for our child in New
: Jersey, any one has experience with it? Is there any special tax advantage
: with it?
: Any good institution recommendations?
| p******s
发帖数: 76 | 3 Hi, saw your post several days ago. talked to my friend who is a financial
planner.
here is his reponse. Note that there is no cost whatsoever before you sign
any paper work. so feel free to get more info from him.
529 plan has pros and cons
Pros:
1. it has tax advantages, federal tax defer growth. Some states offer state-
tax-derfer growth (NJ does not).
2. No income restriction for contribution, you can contribute $13000 or
65000 (5 year total) into it without triggering gift tax issue.
Cons:
1. Investment options are limited. Performance is not very attractive. http://online.wsj.com/article/SB124045704717946739.html
2. 529 is counted as parents' asset when you apply for FAFSA. It affects
financial aid application.
www.finaid.org
http://www.fafsa.ed.gov/fotw1213/pdf/PdfFafsa12-13.pdf
3. If the money is used for high education (college and above), no tax will
be applied. 10% penelty and tax on the gain part will be applied if used for
other purpose.
Prepaid 529 plan is less attractive since the student will not have many
choices for school beside in-state schools.
It really depends on your family financial situation to open a 529 plan or
not. You have other options saving for college fund. You can contact me at
y*****[email protected] for more information.
【在 W*N 的大作中提到】
: We are thinking of starting a 529 college saving plan for our child in New
: Jersey, any one has experience with it? Is there any special tax advantage
: with it?
: Any good institution recommendations?
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