The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: 529 plans||Date: 11/16/2013 1:31 AM|
|Author: foo1bar||Number: 119525 of 122088|
My feeling is that one should only invest in a 529 plan if all retirement tax shelter limits are reached?
I would not agree with "all".
A couple can potentially have 35K they're putting into a 401k.
Plus their employer can potentially be putting in money, up to a combined limit (employer+employee) of $51K
Add in $11k for IRA contributions.
That's $46K that the couple has direct control over contributions. And potentially up to $113K that could be going into retirement accounts.
If a couple calculates that they can fund their retirement with $30K, and they want to put $5K or $10K into a 529, I think that's a quite reasonable plan.
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