Help with college saving

[chrisg202]

Dear all,

 

I need help choosing the best way to save for our first child as I've no experience.

My state doesn't offer any tax advantages for 529 plans and our income is 190K which is above the limit for roth IRA.

My question is: why saving into a 529 plan and limiting the money to educational expenses and not puting that money into my personal investment account or even a separate investment account and that way the money will be used for other-non educational expenses?

Any useful tips?

Thank you

[jfoxcpacfp]

The short answer is: If the money is used for college, the growth and income is tax free. To me, it's not that simple, but to some, it is. I'm sure others will weigh in and you might want to read the Pro-Con that WCI and I did on this topic in February.

btw, whether or not you intend to earmark the $$ for college, you and your spouse can each contribute to a back-door Roth IRA if you have no pre-tax IRAs in your names.

[chrisg202]

Thanks Johanna,

That's very helpful

 

[jfoxcpacfp]

You're welcome.