Re: 529 financial plans

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

 > From: Flora  <http://profiles.yahoo.com/flora>
 > Date: Mon, 18 May 2015 04:59:12 -0400
 >
 > Alexander filed a state income tax return in CA, but didn't have to pay 
 > anything in taxes. 
 > 
 > I believe that a 529 can be opened in any state. 

Correct.  But, it would make the most sense to open it in the state where
there would be possible income tax paid and/or where residency is
established.

But, since Alex didn't pay any tax, I suppose it doesn't matter overall.

It would be the most convenient for me to open it in Ma since
they use Fidelity and I already have a Fidelity account.  [Of course, that
means that there's only one point of failure w.r.t. security.  I don't
know how to weigh that.]

 > On May 17, 2015, at 10:46 PM, Robert <http://dummy.us.eu.org/robert> wrote:
 > >> 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?