Chubz Posted February 1, 2008 Report Share Posted February 1, 2008 I have been planning college funds for the kids, but one of my coworkers indicated he has set up trust funds ofr each of his kids becasue they offer greater flexibility in how the money can be spent, i.e. off campus housing. If anyone is intin=mate with this or even does this for a living, your input would be of great help to me and my boys (future carvers). I see 529 everywhere, but is it really that effective. Also considering Roth IRA's Mind you I dont have a ton of cash to throw around so ocnsider that as well. Thanks Greg Quote Link to comment Share on other sites More sharing options...
tex1230 Posted February 1, 2008 Report Share Posted February 1, 2008 529 plans are better in the fact that the money does not become the property of the child on theri 18th (or 21st) birthday. So if your kid(s) - (like me) - decide after a year of college that they are going to snowboard for a few years...you don't have to let them have the money. you retain control. While it is restricted to "educational expenses", it can just as easily be spent on your viniculture course in italy as on your son's community college tuition and books... Quote Link to comment Share on other sites More sharing options...
skatha Posted February 2, 2008 Report Share Posted February 2, 2008 I agree about the 529 fund..plus, it's not taxable once it's released for educational expenses while a trust fund is.... I have both for my kids. I'm actively contributing to the 529 funds and watching the trust grow. I formed both trusts before the 529 laws came out. The trust can be their mad money...... Set up correctly, the trust can be released at times other than the 18th B-day. My trust fund doesn't come to me until my mother dies... Quote Link to comment Share on other sites More sharing options...
John Bell Posted February 9, 2008 Report Share Posted February 9, 2008 Can't find this anywhere: Does your kid actually have to be born already in order for you to start a 529 on his/her behalf? (We're going have some in the next few years most likely, but I'd like to take the most advantage of compound interest by starting as early as possible.) BTW, Chubz, you wouldn't want to do a Roth IRA for your kids' college. I believe that to use one for a non-retirement purpose (e.g., first-time home purchase, educational expenses, major illnesss, alpine snowboard--haha), you'd have submit a slew of documentation to the IRS. I think the 529 would afford the same tax break but do so more simply. Quote Link to comment Share on other sites More sharing options...
tex1230 Posted February 9, 2008 Report Share Posted February 9, 2008 you can't open a 529 without a social security number for the minor. If you can figure a way to get a SSN for your expected child, go for it! (not possible as far as I know) Quote Link to comment Share on other sites More sharing options...
Mark.Andersen Posted February 12, 2008 Report Share Posted February 12, 2008 True you need a SSN for a 529 plan, however many states allow plans to be transfered among "immediate" family members. So, you can set one up for you and your spouse now and transfer them once your little demons are hatched. :) Please note that this info is dated, I've not researched 529s in a number of years, so it is possible that this loophole has been closed. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.