Hi everyone, here is the situation. My wife and I are expecting the 1st baby. We already have $130K in 529. We are not certain if we plan to have only one kid or more; college choice is a very subjective matter but I tend to feel that I overfunded 529.
1) Is it still a viable option to withdraw the principal at some point and invest in Roth IRA or brokerage, but let the gains to keep growing in 529? To be clear, DW and I are maxing out our retirement accounts.
2) If you overfunded 529, what did you do to correct it?
3) We do realize now that there are state schools, in state tuitions, scholarships, etc. - if a kid knows that there is a lot in 529 then he or she might lose motivation to try harder (we don’t want to spoil).
Thoughts and wisdom will be appreciated.
1) Is it still a viable option to withdraw the principal at some point and invest in Roth IRA or brokerage, but let the gains to keep growing in 529? To be clear, DW and I are maxing out our retirement accounts.
2) If you overfunded 529, what did you do to correct it?
3) We do realize now that there are state schools, in state tuitions, scholarships, etc. - if a kid knows that there is a lot in 529 then he or she might lose motivation to try harder (we don’t want to spoil).
Thoughts and wisdom will be appreciated.
Statistics: Posted by mander75 — Mon Jan 06, 2025 1:31 pm — Replies 1 — Views 154