My emergency fund is fully funded!!! Yea! We are only one month behind, so not so bad. Now we can move on to our Roths. Plan to open one this week. Anyone have any recomendations? Also want to do college funds. Anyone want to give advice on ESA's or 529's?
Thanks in advance.
Finally funded and question (help please)
November 17th, 2008 at 06:57 am
November 17th, 2008 at 07:00 am
November 17th, 2008 at 07:22 am
529 %u2013 Only good for colleges, universities, and post secondary education. You can contribute up to $200k per beneficiary. These are state run plans and you have to invest in what the plan offers.
And congrats!!!!
November 17th, 2008 at 07:25 am
November 17th, 2008 at 07:44 am
November 17th, 2008 at 08:41 am
November 17th, 2008 at 09:38 am
This is because their is no federal tax deduction for 529s or ESAs (if the state deduction on 529s helps you significantly, then my general advice is wrong in your case).
There are federal deductions worth anywhere from $4k to $1650 for paying college education from taxable accounts.
My logic is that a $4k deduction taken in 4 different years (16k total) and a paid for house is worth more than any state deduction you can get over contributing for 2-18 years.
November 17th, 2008 at 10:05 am