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Can’t hurt. But do we think college will be college in 18 years? Or will people just learn from YouTube videos.
Pro
My parents never opened one... but that is probably because they didn’t pay for my schooling.
Bowl Leader
Does your state offer a deduction/credit for contributions? Mine does, so I contribute to it just to the small max for that. Some states require you to use their plan which may have higher fees and/or a poor selection of funds.
Beyond that, I plan to use mega backdoor Roth funds. I'm still researching the specifics but I have the ability to contribute more than I currently do and then it gives us significantly more flexibility. Retirement assets also don't count against us on fafsa if I retire/take a lower paying job before kids are in college and become eligible. Alternatively, if one or more decide not to go to college or college costs are less than expected we can pull out contributions tax free and gift it to them for their first house or jumpstart their retirement.
Pro
Sounds like a good plan. I need to do more research into options. We're in MA, the deduction is $2000 which i dont think is worth it.
I chose UTMA so I can control the investments and it also doesn’t need to go toward school.
Pro
I'll looking into that thanks!
20k deduction in Illinois for 2 kids 529, get 1k back in taxes.. will use alternatives and stop using it once move out of Illinois..
So do you not think this is a good plan if you live in Illinois?
Chief
I started putting $100 a month into 529 the day my daughter was born. Won’t be nearly enough to pay for her college but I’m planning to use Roth contributions since there is more flexibility. I’m too lazy to go through the hassle of halting the $100/mo contributions.