Comments on: Why a 529 Savings Plan is the Best Way to Save for College

By: Peach

Peach — Mon, 25 Jul 2016 04:31:49 +0000

In reply to Jess. Hi Jess, Great question. I found this article a few years back in Kiplinger's Personal Finance, and the same holds true in this article as it did in 2014. Basically, it breaks down state specific 529s to help you pick which one is best for you.

By: Jess

Jess — Thu, 21 Jul 2016 21:53:09 +0000

Great info! How do you decide which state to set your 529 up in? What criteria should we be looking at?

By: Peach

Peach — Sun, 26 Jun 2016 19:05:40 +0000

In reply to Julie.

Hi Julie!

Thanks for the feedback! Everything attached to the tax code is beyond complicated, so I am so happy I was able to break it down into a way that you fully understand it!

Good luck with it all 🙂

By: Julie

Julie — Thu, 23 Jun 2016 12:38:24 +0000

This is a great guide! It really breaks down the complicated aspects of 529s well. Thanks for posting!

By: Peach

Peach — Thu, 16 Jun 2016 11:54:04 +0000

In reply to Mike.

Hi Mike!

When you are expecting, you’re going to get a ton of “crap” from people to congratulate you on the new baby. I learned this lesson after our first born, so when people asked what our daughter (2nd born) needed when my wife was pregnant, I said, “Money for college”. Low and behold, I had money set aside for her 529 before she popped out!

By: Mike

Mike — Tue, 14 Jun 2016 20:59:01 +0000

lots of great info here…my wife and i will be starting one when we become parents…i’ll save this post…

By: Peach

Peach — Thu, 09 Jun 2016 18:00:39 +0000

In reply to Raven Phillips.

Hi Raven!

Thanks so much for the nice words about the blog. As far as your question, it all depends on where you have your money saved right now. If the money is saved in a simple savings or money market account, then you can definitely move that over into a 529. If you have it saved into a ROTH, ESA, or other types of savings vehicles, then you’re going to want to sit down with a CPA to find out what you can/cannot move into the 529 and how to do so without paying a 10% penalty.

I definitely think a 529 is the best way to go because it allows you to save a ton of money for college for your daughter (remember, tuition doubles every 9 years) and it keeps the taxes off of your money when used for qualified educational expenses. Sound good? 🙂

By: Raven Phillips

Raven Phillips — Wed, 08 Jun 2016 02:41:45 +0000

Hi,
Love your blog!
I started an account for my son before he turned one, he will be six in Nov. However, we did not go with a 529 plan. My daughter will be 3 in August and I really need to set up an account for her. Wondering if the 529 would be the way to go now. We had to pay taxes for my son’s account this year. Is it possible to transfer his money to a 529? Thanks for any advice!
Raven

By: Catherine Alford

Catherine Alford — Tue, 07 Jun 2016 22:53:07 +0000

We’ve been saving for our kids’ college already even though they are only just over 2 years old. College is expensive!