Re: 529 financial plans

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

I didn't know your tax liability was so low.  I guess you're in a strange
place where the tax credit doesn't really help you -- a donut hole of
sorts.

I guess if you get better returns on the New York one, it could be helpful
to, for example, Holly.  But, doesn't really help with Nicolas and
Alexander.

Do you imagine that your tax liability will be the same in 2015 as it was
in 2014?

 > From: Flora  <http://www.gmail.com/~flora>
 > Date: Sun, 27 Sep 2015 16:29:55 -0400
 >
 > I've done some research and comparisons. The Vermont 529 has a state tax
 > advantage. There is no federal tax advantage for us.
 > 
 > A state income tax credit of 10% of the first $2,500 contributed to the
 > Vermont Higher Education Investment Plan (VHEIP) per beneficiary per tax
 > year is available to any Vermont taxpayer (or, in the case of a married
 > couple filing jointly, 10% of the first $5,000 contributed per beneficiary)
 > â?? a tax credit worth up to $250 per beneficiary ($500 per beneficiary for
 > married couples filing jointly). *This is a non-refundable income tax
 > credit.*
 > 
 > Because VHEIP credits are nonrefundable, they may only be applied against
 > the Vermont income tax liability of an individual, estate or trust.  The
 > credit amount cannot exceed the total tax liability and unused credits may
 > not be carried forward or back to another year.
 > 
 > Our total Vermont tax liability in 2014 was $130.
 > 
 > I compared New York, Ca, Utah, and Vermont. None have enrollment
 > fees.
 > 
 > New Yorkâ??s 529 is one of the top-performing 529 plans on the 1, 3, 5 and 10
 > year rankings. Caâ??s 529 is one of the top-performing 529 plans on
 > the 1 and 3 year rankings. (TIAA-CREF took over the management of the
 > Ca ScholarShare College Savings Plan from Fidelity in November
 > 2011, so there was no ranking on the 5 and 10 year ranking list.) (
 > 
 > http://www.savingforcollege.com/articles/2015-5-year-top-performing-direct-plans-Q2-333
 > 
 > )
 > 
 > New York's 529 has one of the lowest Total asset-based expense ratio at
 > .16%. Vermontâ??s is .39%. Caâ??s: 0.11% - 0.60%. None for the
 > Principal Plus Interest Portfolio. (
 > 
 > http://www.savingforcollege.com/compare_529_plans/index.php?page=compare_plans&plan_ids
 > []=5&plan_ids[]=37&plan_ids[]=52&plan_ids[]=53&order_by=plan_question_479
 > )
 > 
 > I have not yet set anything up. Do you have any thoughts?