It’s possible to cash out I Bonds tax free for college expenses or transfer to a 529 plan but you must meet an income limit and some other requirements.
You can buy I Bonds in your kid’s name but you should first decide whether to add to their 529 plan or keep full control of the money in your own name.
When you child gets close to going to college, consider investing your 529 plan account in CDs or a stable value fund. Only some 529 plans offer them.
Rolling over a 529 account from one plan to another is very simple, but first find out whether your state will claw back previous state income tax benefits.
If your child is close to college age, consider Colorado’s CollegeInvest Stable Value Plus 529 Plan for the attractive yield and the principal guarantee.
Residents in many states can use a 529 plan from another state without losing any tax benefits.
Which state has the largest 529 plan in the country? What does that tell us about the power of distribution by brokers and advisors?
If you want DFA funds you don’t need to pay an advisor $1,000 a year or more. See how to buy DFA funds without an advisor.
An alternative to Colorado’s Stable Value Plus plan for those who want a guaranteed return for their 529 plan.
Reader Vicki left this comment on my previous post 529 Plans: Age-Based Options Don’t Make Sense: “I was just about to enroll in an age based plan here but pulled up your page before I signed on the dotted line. Help!! I just want this over with. I thought I had looked at all options […]
Rob Lieber wrote about prepaid 529 plans in his New York Times Your Money column: College Plans You Thought Were Safe. It calls to people’s attention that some prepaid 529 plans are not guaranteed by the states (some are). It questions whether these plans are safe. I hate to be a contrarian again but I […]
It’s that time of the year again. I need to make a new contribution to my niece’s 529 plan for her future college expenses. When I looked for a plan for her last year, I came to the conclusion that the typical age-based options don’t make sense. The typical age-based options in a 529 plan […]