If you would like to save for education related expenses the 529 is an excellent tool to do so. California does not provide any tax break at the time you put the money in however your money still grows tax free and you can withdraw it for education related expenses without paying any federal or state tax. Think of it like a ROTH IRA but for education.
You are not obligated to pick the California ScholarShare 529 and you can pick any states 529. California does not give a tax break on your tax filing for that year whereas some other states do give a tax break to their residents.
I live in California and compared the California ScholarShare 529 with Vanguard 529 which is based in Nevada. Despite California not giving the initial tax break I still went with California ScholarShare over Vanguard because some of their index funds have very low expense ratios that track the S@P 500 ( it was 6 basis points compared to Vanguards 15 bases points for a similar fund). Also I can max out the California ScholarShare to a higher amount ($529,000) compared to Nevada plan of $500,000.
孩子还有10年以上才上大学，投资房比较好。启存529的时间在孩子上大学前一到两年
ReplyDelete比较好。
上学前一两年才存，经历一把market correction，然后把剩下来的取出来付学费？
ReplyDelete
ReplyDeleteA new bill has been introduced that would create a 20% state tax credit, up
to $500 a year, for contributions to California's Scholarshare College
Savings Plan by state residents. The credit would be available to
individuals with incomes below $100,000 and married couples with incomes
below $200,000.
ReplyDelete一般人应该是先存401K, roth, 都满了之后529根本没有什么不好的。
你不存529用来买股票买投资房最后都是按parental asset算， 5% 左右。
也就是你有10万刀影响拿5000刀的financial aid,这个是毕业要还的,省的也就5000刀几
年的利息。
至于merit based scholarship, 和529没关系，如果拿到了的话，还可以免税提
529里等量的钱出来。
ReplyDelete不会，要马上convert，有延时的话中间的gain是要按当年income交税的。
【 在 timefall (时光崩塌) 的大作中提到: 】
: 这个 conversion 不会导致重复缴税？还是要保证当年 covert 完毕？
ReplyDelete老美用529还有一个用处是减少遗传税。比如有钱的爷爷奶奶给孙子的529放钱，好像每
年头1.5w不算gift