- quote -


I have looked at my state rules and a couple of my greatest concerns
have been put to rest. We moved from another state and I have
wondered since we came (but was always too lazy to look into it)
whether contributions from another state's plan would be tax-free in
this state. It appears they are. A question remains whether I can
transfer from the plan of another state to my state if the rules
change at some point. Is this typically feasible like moving a 401k
when you change employment? Regarding my first posting, I have not
yet identified any rule that would prohibit me from putting money in
to the 529 and then immediately withdrawing it for qualifying
expenses.

Mike

"Michael Grinnell" <msgrinnell[at]charter.net> wrote in message
news:237a8ae7.0401171112.693e8693[at]posting.google.com...
- quote -

529 plans vary from state to state, and state level tax advantages differ
widely. In my state, people can deduct contributions from state income tax
returns, within certain limits. If you look up your state's plans, you'll
get the best answers to your questions.

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry.

List,

I recently posted indicating that my 15 year fixed mortgage on my home
will be paid off the year my first born turns 18. It struck me that
given current 529 rules (unless I am misunderstanding them, which is
why I am posting) what was formerly paid out each month as a mortgage
payment could be re-routed at that time into the 529 and then
withdrawn as soon as needed for higher education expenses, thus making
what is being paid for my childrens' college education practically
deductible out of current income. These are, of course, based on the
rules in place now remaining the same and also that I am understanding
them correctly.

Is this an accurate take or is there something such as length of
holding requirements for 529s that I missed in the fine print?

Mike