I’ve been pretty happy with my kids 529 plan @ vanguard…. Passive indexes slow and steady.. I use the Nevada plan, since I don’t like the CA one that isn’t done by vanguard, and there is no state tax benefit with a 529 in CA
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This – all of it.
That said – we’re switching our investment, this year, to ROTH IRA so we have more flexibility.
If they do Jr. College or don’t go to college, that can be used for our retirement.
We used to be income restricted, but that has changed and we qualify for Roth contributions again.[/quote]
I’m jealous….
I’m still a salary slave. Can’t do a Roth IRA….
To clarify, you mean that future contributions are to a Roth IRA… (You’re not rolling over funds from a 529 plan to a Roth IRA). I just want to make sure, because I want to make sure that 529->Roth IRA isn’t something you can do, right? If it is, I want to know about it:)
As far as I know you can’t do 529-Roth. For us – future contributions are going to Roth. The salary limitations have gone up and my husband retired so we’re *well* under the limit. (That’s good and bad… I guess.)
The nice thing about Roth is you can withdraw penalty free for qualified education expenses… just like a 529… but it’s not limited to education like a 529 since you can also use it for anything you want once you reach 59.5. So any unused education $ can be used for retirement.
[quote=UCGal]As far as I know you can’t do 529-Roth. For us – future contributions are going to Roth. The salary limitations have gone up and my husband retired so we’re *well* under the limit. (That’s good and bad… I guess.)
The nice thing about Roth is you can withdraw penalty free for qualified education expenses… just like a 529… but it’s not limited to education like a 529 since you can also use it for anything you want once you reach 59.5. So any unused education $ can be used for retirement.[/quote]
Thanks for the info…Yes, I looked into doing a backdoor Roth.. Unfortunately, since I had multiple employers, and since I rolled my old 401k into a Rollover IRA, I won’t be able to do a backdoor IRA, because IRS would include my Rollover IRA into their calculation. I suppose I could rollover everything in my Rollover IRA into my existing employer’s 401k , and that would eliminate that problem. But that’s putting a lot of faith into my company’s 401k…. I don’t like my employer’s 401k as much as I like my Rollover IRA…
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