529 vs Roth - Honda-Tech - Honda Forum Discussion


General Discussion and Debate Discuss, Debate, and Converse with other Honda-Tech members in a mature, intelligent manner.

529 vs Roth

Reply
 
 
 
Thread Tools Search this Thread
Old 01-11-2018, 07:44 AM   #1
Imgur Lives Matter
Thread Starter
 
90hatch94dsm's Avatar
 
Join Date: Feb 2005
Location: Satan's Butthole
Posts: 317
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but now I'm thinking a Roth might be the best idea since it can be used for anything and withdrawn at any time.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.
90hatch94dsm is online now   Reply With Quote
Old 01-11-2018, 07:45 AM   #2
Touching My Member
iTrader: (1)
 
.Manny.'s Avatar
 
Join Date: Oct 2005
Location: Whittier, CA
Posts: 4,764
Default Re: 529 vs Roth

**** all that. Underwater Welding.
.Manny. is offline   Reply With Quote
Old 01-11-2018, 07:46 AM   #3
footwork mastery
 
.Grimace's Avatar
 
Join Date: Sep 2004
Location: Bigger, Faster, Smarter, Stronger
Posts: 5,472
Default Re: 529 vs Roth

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

Sorry bro
.Grimace is offline   Reply With Quote
Old 01-11-2018, 07:49 AM   #4
Imgur Lives Matter
Thread Starter
 
90hatch94dsm's Avatar
 
Join Date: Feb 2005
Location: Satan's Butthole
Posts: 317
Default Re: 529 vs Roth

RIP me
90hatch94dsm is online now   Reply With Quote
Old 01-11-2018, 07:50 AM   #5
talks to himself
 
CX-Adam's Avatar
 
Join Date: Apr 2009
Location: Where YOU live?
Posts: 1,545
Default Re: 529 vs Roth

Quote:
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.
CX-Adam is offline   Reply With Quote
Old 01-11-2018, 07:50 AM   #6
Imgur Lives Matter
Thread Starter
 
90hatch94dsm's Avatar
 
Join Date: Feb 2005
Location: Satan's Butthole
Posts: 317
Default Re: 529 vs Roth

Quote:
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
90hatch94dsm is online now   Reply With Quote
Old 01-11-2018, 07:51 AM   #7
footwork mastery
 
.Grimace's Avatar
 
Join Date: Sep 2004
Location: Bigger, Faster, Smarter, Stronger
Posts: 5,472
Default Re: 529 vs Roth

Srs question.

Her first date will you be cleaning a gun/ drinking a beer when he shows up?
.Grimace is offline   Reply With Quote
Old 01-11-2018, 07:52 AM   #8
talks to himself
 
CX-Adam's Avatar
 
Join Date: Apr 2009
Location: Where YOU live?
Posts: 1,545
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.
CX-Adam is offline   Reply With Quote
Old 01-11-2018, 07:52 AM   #9
Imgur Lives Matter
Thread Starter
 
90hatch94dsm's Avatar
 
Join Date: Feb 2005
Location: Satan's Butthole
Posts: 317
Default Re: 529 vs Roth

>implying she'll be allowed to go on dates

90hatch94dsm is online now   Reply With Quote
Old 01-11-2018, 07:53 AM   #10
Imgur Lives Matter
Thread Starter
 
90hatch94dsm's Avatar
 
Join Date: Feb 2005
Location: Satan's Butthole
Posts: 317
Default Re: 529 vs Roth

Quote:
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
90hatch94dsm is online now   Reply With Quote
Old 01-11-2018, 07:53 AM   #11
footwork mastery
 
.Grimace's Avatar
 
Join Date: Sep 2004
Location: Bigger, Faster, Smarter, Stronger
Posts: 5,472
Default Re: 529 vs Roth

Damn you gonna be real strict huh O_O
.Grimace is offline   Reply With Quote
Old 01-11-2018, 07:54 AM   #12
talks to himself
 
CX-Adam's Avatar
 
Join Date: Apr 2009
Location: Where YOU live?
Posts: 1,545
Default Re: 529 vs Roth

Did you have bby already or is it due soon?
CX-Adam is offline   Reply With Quote
Old 01-11-2018, 07:54 AM   #13
Imgur Lives Matter
Thread Starter
 
90hatch94dsm's Avatar
 
Join Date: Feb 2005
Location: Satan's Butthole
Posts: 317
Default Re: 529 vs Roth

she's about 5.3 months old
90hatch94dsm is online now   Reply With Quote
Old 01-11-2018, 07:56 AM   #14
footwork mastery
 
.Grimace's Avatar
 
Join Date: Sep 2004
Location: Bigger, Faster, Smarter, Stronger
Posts: 5,472
Default Re: 529 vs Roth

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
.Grimace is offline   Reply With Quote
Old 01-11-2018, 07:58 AM   #15
talks to himself
 
CX-Adam's Avatar
 
Join Date: Apr 2009
Location: Where YOU live?
Posts: 1,545
Default Re: 529 vs Roth

What kind of ROTH plan are you looking at?
CX-Adam is offline   Reply With Quote
Old 01-11-2018, 07:58 AM   #16
GDD's DJ EX-M0D
 
816d16's Avatar
 
Join Date: Oct 2002
Location: Hide it in my sock
Posts: 3,948
Default Re: 529 vs Roth

Quote:
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
816d16 is offline   Reply With Quote
Old 01-11-2018, 08:00 AM   #17
Imgur Lives Matter
Thread Starter
 
90hatch94dsm's Avatar
 
Join Date: Feb 2005
Location: Satan's Butthole
Posts: 317
Default Re: 529 vs Roth

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

Quote:
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.
90hatch94dsm is online now   Reply With Quote
Old 01-11-2018, 08:01 AM   #18
something gnarly
 
5SpdH22's Avatar
 
Join Date: Jan 2008
Location: Chicago
Posts: 666
Default Re: 529 vs Roth

**** a 529, invest it in an EM1
5SpdH22 is online now   Reply With Quote
Old 01-11-2018, 08:02 AM   #19
GDD's DJ EX-M0D
 
816d16's Avatar
 
Join Date: Oct 2002
Location: Hide it in my sock
Posts: 3,948
Default Re: 529 vs Roth

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

Just make sure it's well bought
816d16 is offline   Reply With Quote
Old 01-11-2018, 08:05 AM   #20
at the jetties fishin'
 
stackz's Avatar
 
Join Date: Aug 2002
Location: james island, sc
Posts: 3,614
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
stackz is offline   Reply With Quote
Old 01-11-2018, 08:09 AM   #21
footwork mastery
 
.Grimace's Avatar
 
Join Date: Sep 2004
Location: Bigger, Faster, Smarter, Stronger
Posts: 5,472
Default Re: 529 vs Roth

Quote:
Originally Posted by 816d16 View Post
Great advice

Just make sure it's well bought
And EBP duh
.Grimace is offline   Reply With Quote
Old 01-11-2018, 08:12 AM   #22
I took way too long
iTrader: (3)
 
slowman's Avatar
 
Join Date: May 2002
Location: MAGAland
Posts: 10,272
Default Re: 529 vs Roth

I vote Roth because I have a Roth IRA.
slowman is online now   Reply With Quote
Old 01-11-2018, 08:12 AM   #23
#stillneedsadiaper
 
solsisters's Avatar
 
Join Date: Apr 2017
Posts: 29
Default Re: 529 vs Roth

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

Vanguard.com
solsisters is online now   Reply With Quote
Old 01-11-2018, 08:13 AM   #24
Imgur Lives Matter
Thread Starter
 
90hatch94dsm's Avatar
 
Join Date: Feb 2005
Location: Satan's Butthole
Posts: 317
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.
90hatch94dsm is online now   Reply With Quote
Old 01-11-2018, 08:19 AM   #25
Video Game Collector
 
jonebone's Avatar
 
Join Date: Sep 2006
Location: Calvert County, MD
Posts: 1,711
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.
jonebone is online now   Reply With Quote
 
 
Reply

Related Topics
Thread Thread Starter Forum Replies Last Post
Death Wish signalpuke General Discussion and Debate 0 08-03-2017 07:24 PM
Dashboard removal - Causes electrical issues Kyle Roth Tech / Misc 2 07-16-2017 07:18 AM
Write-Up: DIY Front Wheel Bearing Replacement OneBadTurboCRV Honda CRX / EF Civic (1988 - 1991) 77 09-23-2016 11:35 PM
Taking Money out of Retirement Fund to pay off Student Loans whited General Discussion and Debate 105 05-18-2016 05:51 PM
1997 - 2001 Honda CRV RD1 Rear Disc Conversion DIY Write-Up How-To Guide OneBadTurboCRV Honda Element & CR-V 5 02-03-2016 08:11 AM


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -8. The time now is 07:16 AM.


We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.