Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Author: stevez Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: saving for college Date: 10/3/1997 8:55 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I was trying to figure out the best way to save for my daughters college
expenses. My wife and I combined have an AGI around $125,000 and
contribute to our employers 401K plan. It seems that the new
Educational IRA is a good way to open a mutual fund account, however, it
limits our contributions to $500/year. If we want to invest more would
it make sense to open a tradional or Roth IRA mutual fund account and
simply take an early distribution for our daughter's educational
expenses?
Print the post Back To Top
Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 455 of 121219
Subject: Re: saving for college Date: 10/3/1997 2:08 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
<<I was trying to figure out the best way to save for my daughters college
expenses. My wife and I combined have an AGI around $125,000 and
contribute to our employers 401K plan. It seems that the new
Educational IRA is a good way to open a mutual fund account, however, it
limits our contributions to $500/year. If we want to invest more would
it make sense to open a tradional or Roth IRA mutual fund account and
simply take an early distribution for our daughter's educational
expenses?>>

That is certainly one way to do it. Other ways would include using the Hope/Lifetime learning credits to help you out, looking into a state qualified state prepaid tuition program, establishing a UGMA account for the kids, and funding it with annual gifts from you and your spouse. Another way would be the establishment of a Trust for the kids, also funding it with the gifts.

BUT...this might put you in jepordy for any financial aid (if you really care about that).

You might want to check out the Inheritance Strategies folder, where this issue (along with the assoicated "kiddie tax" issues that may accrue to a UGMA or Trust account. You might want to check out that folder for a BUNCH of additional information.

The BEST way...if there was a best way that would apply to all, I would be happy to write a book about it (and make millions of dollars). But there is NO "best" way to accomplish your goal.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Advertisement