Pay college fees out of the 529 plan or use cash in today's env?

[dvalley]

While the current market is down compared to last year the 529 plan has been in a target-date fund so it's been pretty much in a stable value fund as of the last couple of years. While I do have a reasonable sized cash earning 2%-3.75% depending on where it's sitting I'm leaning towards using the 529 plan. Any reason I shouldn't?


Oh I have 3 more yrs of college fees to pay for and only have about 1 yr worth of money left in the 529 account.

 

[Texas Proud]

I would use the 529 first as it does affect your financial aid more than cash does.


I have to balance mine with savings bonds that are reaching final maturity in the next couple of years...

 

[MarieIG]

I would use the 529.

 

[Phroig]

Is the money in a target date fund or stable value? Do you get a state tax break for contributions?

 

[dvalley]

Is the money in a target date fund or stable value? Do you get a state tax break for contributions?

Target date fund but it pretty much acts like a stable value once you reach the target date in order to preserve the amount as much as possible. No state tax break on contributions.


Thanks everyone.

 

[Phroig]

I agree with the others, and with your initial thought. Just use the 529 and be done with it.