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View Full Version : How do I start a 529 for my DC?


alexmommy
11-21-2009, 08:59 PM
Our 6 mo DS has everything (clothes, toys, books), so DH & I have thought of setting up a 529 for him for Christmas, but we don't know where to start. Has anyone done this? How/where do we do this? Is there a minimum amount needed? Any other hidden things or restrictions we should know about? Also, deposits are tax-deductible, right? TIA. We live in MD if that helps.
amandabea
11-21-2009, 10:11 PM
There are many plans out there. Some you can open directly and some are only available through a broker/financial planner. I used a few sites to research the various state plans. I found www.savingforcollege.com helpful/informative (I think that's it - I'll verify when I have time at the computer). Some states will give you some kind of "incentive" if you reside in that state. We're in CA and we selected the Utah state plan.

You can do a search here and find old posts with additional info & links.
TwinFoxes
11-22-2009, 12:51 AM
There are many plans out there. Some you can open directly and some are only available through a broker/financial planner. I used a few sites to research the various state plans. I found www.savingforcollege.com helpful/informative (I think that's it - I'll verify when I have time at the computer). Some states will give you some kind of "incentive" if you reside in that state. We're in CA and we selected the Utah state plan.

You can do a search here and find old posts with additional info & links.

Definitely do a search, there were some posts with lots of info. And pp is correct, savingforcollege.com is an informative site.

Virginia and Utah have very good plans. I'm sure other states do too, but those are the two that stuck in my head. (Louisiana's plan had a high return, but at the risk of offending Louisianans...I'm not not trusting my kids' college future with their state.) You do not have to reside in a state to use their plans, but you can often get tax breaks if you do. Your DC also doesn't have to go to school in the state where you open the 529. Some states let you open the accounts online. It's actually pretty simple...if you have a 401k or similar, it's no more difficult than that. :)