Is a 529 a good short-term savings vehicle for my own educational expenses?

December 22, 2014

If your state's plan offers a good tax deduction and a fixed option, you may benefit a little from using the 529 plan. Unfortunately, most 529 plans rely too heavily on risky investments, so check your plan options for a fixed account and the interest rate. 

 

Otherwise, 2-4 years isn't going to provide much tax benefit on the gain side. Your gain is likely to be relatively small. 

 

On your Roth IRA comment, I believe you are referring to the 5 year window for avoiding the 10% penalty. Qualified education expenses are an exception to the penalty. For unqualified expenses, you can always withdraw your contributions to a Roth IRA without penalty. 

 

Please reload

Clear Financial Advisors-Best Detroit Advisors (WXYZ/ConsumerAffairs)

July 17, 2019

1/4
Please reload

CLEAR & INTENTIONAL  INVESTING

online fee-only fiduciary financial advisor blog robert schmansky
Categories
Follow Us
online fee-only fiduciary financial advisor blog robert schmansky
online fee-only fiduciary financial advisor blog robert schmansky
online fee-only fiduciary financial advisor blog robert schmansky
About Us

Detroit, Ann Arbor, and online fee-only, fiduciary financial advisor blog / podcast on retirement, investments, economy, taxes, 401k, 403b, Roth, IRAs

online fee-only fiduciary financial advisor blog robert schmansky

A Clear and Intentional Investment Plan

© Robert Schmansky | Disclaimer