Comments for Educational Savings for Your Kids

Comment on Any hairstylists in Connecticut that will cut my hair for free or cheap? by Boo

Boo — Wed, 22 May 2013 15:47:37 +0000

Try this one for a low-cost cut.

Nirvana Salon Academy
734 Silas Deane Hwy
Wethersfield, CT 06109 Map
860-529-2600

or just look in your phone book under schools, barber or beauty. They cut hair cheap to give their students real-world practice.

Don’t worry, they don’t allow their students to cut a customer’s hair until they’ve reached a level of competence.

Comment on What do you think of gerber start smart college plan? by tangyterp83

tangyterp83 — Sun, 19 May 2013 15:46:17 +0000

I have looked into this also, but am leaning towards my state’s prepaid college plan and also putting a small amount into the grow up plan or another 529 plan. Those prepaid plans are a good deal…even with all the extra charges some states add on.

Comment on Can I put college refund check back into a 529k plan? by the tax lady

the tax lady — Thu, 16 May 2013 16:56:50 +0000

You can check with the plan, but if they say no, you can’t.

If it’s been LESS than 60 days, just do a rollover to a new account.

Keep in mind that the 529 distribution is a bit flexible–it’s the one that let’s you count money spent on room and board, plus computers as valid distributions.

Next, only the income is taxable, not the principal.
Next, your daughters tax rate is possible lower than yours.
Next, no penalty because she has a scholarship.

IRS pub 970.

Comment on Can I put college refund check back into a 529k plan? by tro

tro — Thu, 16 May 2013 16:16:02 +0000

check with your plan to see what provisions it has
consider using this refund to start another plan, see if that will work

Comment on Can I convert an IRA account to a 529 college savings account without tax penalty? by kgmboat

kgmboat — Mon, 13 May 2013 16:22:39 +0000

Comment on Can I convert an IRA account to a 529 college savings account without tax penalty? by WealthBuilder

WealthBuilder — Mon, 13 May 2013 16:08:15 +0000

I believe those are beasts of different species.

However, you can keep the money in your IRA and withdraw it before you turn 59.5 and use the money for tuition WITHOUT the 10% penalty. However, any withdrawals will be taxed at your regular tax rate.

If you dump money OUT of your IRA, then open a 529, you’ll be taxed on the IRA money at your normal tax rates, PLUS the 10% penalty. However, once it is in 529 plan, later withdrawals for education purposes are 100% tax free (big difference, versus tax-deferred).

WealhtBuilder

Comment on How much do you set aside for your kid’s college fund every month? by Marilyn

Marilyn — Fri, 10 May 2013 19:33:00 +0000

Asdadad- just because someone wants to save money for their kids’ college education doesn’t mean they are spoon feeding.

Comment on How much do you set aside for your kid’s college fund every month? by Selar

Selar — Fri, 10 May 2013 18:39:48 +0000

We set aside nothing for our childrens college fund. If they are serious enough in school and get good grades they will recieve scholarships and financial aid. No sense in paying for school when a kid doesnt get good grades in high school and screws around. They will not just get better in college. College is a booze and sex fest, the only kids who take it seriously are the ones who pay for it on their own. We pay above and beyond for our children now, they want for nothing. They excel in school- therefore they will excel in life.

Comment on How much do you set aside for your kid’s college fund every month? by justme

justme — Fri, 10 May 2013 17:54:09 +0000

im in canada and have something set up that whatever we put in the government puts some in too, we do 50 a month right now, he’s only 5 months old so.. lol, and if he chooses to do something not college related or gets a scholarship we can use the money for another kid if we have one or our retirement

Comment on How much do you set aside for your kid’s college fund every month? by Emma Laura'sMumMum

Emma Laura'sMumMum — Fri, 10 May 2013 17:45:39 +0000

The Gerber College Plan is not actually a college plan – it is term life insurance on the parents with a payout to said child if you happen to not die and use the life insurance. It is totally false advertising.

We buy bonds for our 2 and 3 yr olds…..everytime we get $50 we buy an I bond……..they have a few hundred dollars each so far.