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529 vs Roth

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Old 01-11-2018, 06:44 AM
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Default 529 vs Roth

Trying to set up a college account for the bby

I was pretty set on a 529 (Indiana link below)

https://www.collegechoicedirect.com/

but now I'm thinking a Roth might be the best idea since it can be used for anything and withdrawn at any time.

Experience?

I want something totally hands off, to give her a jumpstart when she's out of HS.
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Old 01-11-2018, 06:45 AM
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Default Re: 529 vs Roth

**** all that. Underwater Welding.
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Old 01-11-2018, 06:46 AM
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Default Re: 529 vs Roth

Never heard of either of these car models... oh kids.

Sorry bro
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Old 01-11-2018, 06:49 AM
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RIP me
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Old 01-11-2018, 06:50 AM
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Default Re: 529 vs Roth

Originally Posted by .Grimace View Post
Never heard of either of these car models... oh kids.

Sorry bro


I don't think you have to stay in state for 529 plans.
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Old 01-11-2018, 06:50 AM
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Default Re: 529 vs Roth

Originally Posted by CX-Adam View Post


I don't think you have to stay in state for 529 plans.
No you don't but the Indiana plan is supposed to be the way to go for people in-state
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Old 01-11-2018, 06:51 AM
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Default Re: 529 vs Roth

Srs question.

Her first date will you be cleaning a gun/ drinking a beer when he shows up?
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Old 01-11-2018, 06:52 AM
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Default Re: 529 vs Roth

I don't really like the idea of putting money somewhere that it can ONLY be used for one category of expenses. I'm not really sure what the differences in benefits are between the two plans, though.
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Old 01-11-2018, 06:52 AM
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>implying she'll be allowed to go on dates

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Old 01-11-2018, 06:53 AM
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Default Re: 529 vs Roth

Originally Posted by CX-Adam View Post
I don't really like the idea of putting money somewhere that it can ONLY be used for one category of expenses. I'm not really sure what the differences in benefits are between the two plans, though.
529 main benefit is you never pay taxes on it as long as you use the money for education
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Old 01-11-2018, 06:53 AM
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Damn you gonna be real strict huh O_O
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Old 01-11-2018, 06:54 AM
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Default Re: 529 vs Roth

Did you have bby already or is it due soon?
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Old 01-11-2018, 06:54 AM
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she's about 5.3 months old
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Old 01-11-2018, 06:56 AM
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5.3 you damn parents breaking **** down. She is 5 months, 7 days, 12 hours, 38 minutes and 59 seconds old. Oh now 39 minutes and 12 seconds.

Jk
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Old 01-11-2018, 06:58 AM
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Default Re: 529 vs Roth

What kind of ROTH plan are you looking at?
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Old 01-11-2018, 06:58 AM
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Default Re: 529 vs Roth

Originally Posted by 90hatch94dsm View Post
Trying to set up a college account for the bby

I was pretty set on a 529 (Indiana link below)

https://www.collegechoicedirect.com/

but now I'm thinking a Roth might be the best idea since it can be used for anything and withdrawn at any time.

Experience?

I want something totally hands off, to give her a jumpstart when she's out of HS.
Our financial planner recommended an IRA and when the wife asked for suggestions between the two on facebook, it was about 2/1 IRA.

That's all I can help with
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Old 01-11-2018, 07:00 AM
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Default Re: 529 vs Roth

Originally Posted by CX-Adam View Post
What kind of ROTH plan are you looking at?
no idea

Originally Posted by 816d16 View Post
Our financial planner recommended an IRA and when the wife asked for suggestions between the two on facebook, it was about 2/1 IRA.

That's all I can help with
main problem I'm seeing is that you can only open a Roth if the kid has an income, (since contributions can't exceed earned income)

So I'm not sure thats even a real option.
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Old 01-11-2018, 07:01 AM
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Default Re: 529 vs Roth

**** a 529, invest it in an EM1
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Old 01-11-2018, 07:02 AM
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Default Re: 529 vs Roth

Originally Posted by 5SpdH22 View Post
**** a 529, invest it in an EM1
Great advice

Just make sure it's well bought
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Old 01-11-2018, 07:05 AM
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Default Re: 529 vs Roth

I'm just tossing $50 a paycheck into a savings account for her.

because she will have a full ride to harvard so no need for a roth.

oh yes, she WILL
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Old 01-11-2018, 07:09 AM
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Default Re: 529 vs Roth

Originally Posted by 816d16 View Post
Great advice

Just make sure it's well bought
And EBP duh
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Old 01-11-2018, 07:12 AM
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Default Re: 529 vs Roth

I vote Roth because I have a Roth IRA.
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Old 01-11-2018, 07:12 AM
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Default Re: 529 vs Roth

Roth you dumb bitch. It will make hella interest and take out your contributions whenever you want.

Vanguard.com
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Old 01-11-2018, 07:13 AM
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Default Re: 529 vs Roth

So from reading more,

I can either do a 529 in her name,

or just open a roth in our names, and she could use the contributions we've made without taxes or penalties.
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Old 01-11-2018, 07:19 AM
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Default Re: 529 vs Roth

Roth IRA in your name if less than $5500 a year. If going over $5500 a year then you'll have to go 529.

Both have tax free distributions and gains when used properly. With a Roth it's a retirement account, so you have to reach a certain age (65?) for the withdraws to be tax free. With the 529, they have to be qualified college expenses for them to be tax free.

Worst case, you can pull out the contribution (not earnings) tax free of either at anytime. Example, you put in $5000, now it's worth $6000. Bill comes up. You can take out $5000 tax free instantly, but you must leave that $1000 in the account or you'll pay taxes and penalties on it (unless your retired for Roth, or the $1000 is for college in 529).

Hope that makes sense.
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