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Hi my IBM sharks !
With reference to creating a tax saver FD for tax exemption under Section 80C for FY 2022-23, what is the last date by which we need to create the Tax Saver FD and upload it as investment proof on IBM Tax declarations portal?
I know that in December we need to upload the investment proofs, but do we need to get the Tax Saver FD created before that?
Is their any criteria to get promotion in PwC in tech
If it’s been one year with the organisation will they promote ?? And what are the cycles of promotion in pwc indiA PwC India PwC Deloitte KPMG Tata Consultancy EY
Also does promotion depends on having a repo with manager or will hard work be enough :)Accenture India
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529 you only get penalized on what you make not the contributions. I recommend it
Or transfer it to yourself in retirement. Sign up for an “Italian Immersion” class at the local CC. Then go on a tax free vacation. Cough cough... tax free immersion.
All optics guys.
OP - a couple of thoughts
Do you have more than 1 kid? If so, you often (state dependent) can move funds between different dependents. So if kid 1 doesn’t go or use the entire balance, shift it to kid 2 or 3
Do you think you will need the money? If not and your kid(s) don’t use it, change the dependents to your future grandkids
If your kids don’t go to college, use the 529 money to send your fiancé to massage therapist school.
For the 529 only get penalized on the investment growth - not your contributions. It can also be used on a lot of school related expenses as others have mentioned, could also be used for private high schools as well I believe. I graduated college with a 529 program and have no debt as a result and its the best gift my parents could have ever given me. I am so so grateful for it. Also there are interesting loop holes if you happen to live in Virginia - that both you and your spouse could contribute to 529 accounts in the child’s name and get double the tax write off.
All sorts of things to consider. Some people even fund their Roth IRA for their kids’ education.
One downside to a 529 is that withdrawals from it are counted as student non-taxable income and up to 50% of the value of the withdrawal can impeach financial aid
529 can be used for trade schools, vocational schools and community colleges not just 4 year universities. The beneficiary can also be changed to another family member as well. Dont believe there is any time limit on when the money has to be used so could be handy to have if minds get changed.
And private elementary schools now
Taxes
@BCG, I’m guessing you lean towards the 529? My fiancé is concerned that our child may not want to go to college. She doesn’t want to be penalized the 10% for withdrawing the funds and not using it towards education
@PwC1, what’s the upside for investing in a Roth IRA vs a Traditional brokerage account for college
One is that you’re not stuck with it only being able to be used for education expenses. With Roth, you can withdraw and use your contributions anytime without any penalty. Some people pull these and use to pay for their school.
If you do 529 and nobody goes to school, you’ll be penalized and taxed when you withdraw
Can it be used for any college or does it have to be used for a college within your state?
It can be used for most any reasonable education expense. In state vs out of state vs private vs public really doesn’t matter
Not entirely accurate - school eligibility varies on a state by state basis, but you can contribute to plans that are outside your state of residence.