Should you start a 529 college savings plan for your child? Well, there are a lot of things to consider when making that decision once you have some money to put it in. Keeping it simple, when choosing the best one for you, you should start with two main issues. Tax Deduction States have their own 529 plans and have different perks for investors. In looking at the 529 in your home state, does it have a tax deduction for opening in-state? If yes, then it's a strong PLUS for your home state's plan. If not, you may consider looking at the perks in other states. Another important note to make is that if you are likely to move to another state during your children's lives before college, you would not be able to get the tax benefits if you're not a resident. Costs and Investment Options Low costs and a good array of investment options is important to review. If you are not going to receive tax deductions, check the most highly rates options. Also note, it's not just about looking at the lowest cost plan, but also about the investment selections. Here is a link from Forbes about the best 529 plans as of 2021. https://www.forbes.com/.../personal-finance/best-529-plans/
Comments