Announcement

Collapse
No announcement yet.

529 basic question -- where to open an account?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • 529 basic question -- where to open an account?

    This seems like something super basic but I can't find a straight answer.

    Will be opening a 529 for my daughter in the fall once my attending salary kicks in. We live in Michigan.

    Everything I have read indicates the Michigan 529 plan is among the best.

    As far as I can tell, Michigan will give the $10k state tax credit for any 529 (doesn't have to be in state)

    My confusion is this -- if I go to misaves.com I can apply for and open a 529 account for my daughter. Once I've done this on their website, where is the money actually housed? I have my retirement accounts at Fidelity and Fidelity seems to have a 529 option.

    Can I just open the 529 for my daughter at Fidelity, get the tax credit and direct the investments myself?

    I feel like I'm missing something fundamentally different about a 529 account and any other brokerage account -- is there a difference?

  • #2
    I believe each 529 plan has its own funds. Use Michigan's, get the state tax benefit. Easy peasy

    Comment


    • #3
      Fidelity does 529s for several states. But in your situation you have a good state low ER options and a state tax credit. So unless MI has preposterous esceat laws or low balance allowances I’d stay with MI. Michigan’s disclosure for its 529 (often found in small print at the bottom of the home page) will detail the funds and who runs them as well as the various fees and investment options.

      Comment


      • #4
        It looks like it's with tiaa...

        So am I correct in understanding that in order to get the tax credit, I'd have to use the tiaa account and sign up specifically for michigan's plan?

        Comment


        • #5
          Originally posted by LazerBeams View Post
          It looks like it's with tiaa...

          So am I correct in understanding that in order to get the tax credit, I'd have to use the tiaa account and sign up specifically for michigan's plan?
          I would presume that’s the requirement. Look at Michigan’s tax instructions and 529 document.

          Comment


          • #6
            Originally posted by ENT Doc View Post

            I would presume that’s the requirement. Look at Michigan’s tax instructions and 529 document.
            Looked up the state tax instructions, you are correct out only gives the deduction for the Michigan plan.

            Thanks for helping me sort this out

            Comment

            Working...
            X