Re: 529 financial plans

[Robert <http://dummy.us.eu.org/robert>]

 > From: Robert <http://dummy.us.eu.org/robert>
 > Date: Sun, 22 Feb 2015 09:02:28 -0800
 >
 > The small disadvantage is that it counts against financial aid (I guess?).
 > But, if one knows that little financial aid is needed, it's probably worth
 > it.
 > 
 > Ca runs its own 529 fund (it's run by TIAA-CREF).  Because I don't
 > see time-based advantage to doing it now, I'll look into it further after
 > we're done with our taxes.

I looked into it more.  Ca's is *not* Ca income tax
deductible.  Thus, there is no advantage to our investing in Ca's
529 plan.

For Ca, disbursements from the plan are free from Ca tax.
But, since neither Alex nor Nicholas are going to school in Ca,
there is no particular advantage to that.

However, I didn't know if there would be an advantage for a 529 in
Ma, either, for example.

Did Alex have to file taxes for 2014 income?  If so, what state did he
file in?  It might be best to target that state for opening a 529 account.

Alex is not technically a Ma resident, right?

 >  > From: ", Flora" <http://www.state.vt.us/~Flora.>
 >  > Date: Sun, 22 Feb 2015 15:09:13 +0000
 >  >
 >  > I'm looking into this more. Yes, as a parent, the plan contributions grow 
 >  > income tax deferred and will not be taxed if used for a qualifying expense. The 
 >  > money in the account is still considered part of the parents' assets when 
 >  > financial aid is calculated.
 >  > 
 >  > I originally didn't see a big advantage, but will look into it again.