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Financial Planning / Paying For College


Subject:  Re: 529 vs. Roth IRA Date:  5/15/2012  10:25 AM
Author:  PSUEngineer Number:  7967 of 8484

You should check to see if there are any state tax benefits for contributions to your state's 529. Here in NC, I get a state tax deduction on the first $5000 in contributions to the 529 so I contribute that much each year.

Don't forget about the Coverdell Education Savings Accounts. You can contribution up to $2000 per year if your modified adjusted gross income is less than $220,000 joint ($110,000 single). You have the same investment options as you do the Roth IRA. I have accounts for my daughters at Scottrade.

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