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Pay college fees out of the 529 plan or use cash in today's env?
Old 08-03-2022, 04:21 PM   #1
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Pay college fees out of the 529 plan or use cash in today's env?

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.
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Old 08-03-2022, 04:48 PM   #2
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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...
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Old 08-03-2022, 07:18 PM   #3
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I would use the 529.
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Old 08-04-2022, 06:50 AM   #4
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Is the money in a target date fund or stable value? Do you get a state tax break for contributions?
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Old 08-04-2022, 09:27 AM   #5
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Quote:
Originally Posted by Phroig View Post
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.
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Old 08-04-2022, 11:01 AM   #6
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I agree with the others, and with your initial thought. Just use the 529 and be done with it.
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