529 - Wisconsin

[SpicyUnagi10]

Want to open one before EoY for my newborn dd.

Wondering what options people used, even if not in Wisconsin, instead of WI Edvest.

I don't see any reason to use the state plan, when I can open one w/ Vanguard. Looks like I still get the state income credit regardless.

[Morning Glory]

I live in MN and use the Vanguard Nevada plan because of lower fees. MN will give you the tax credit regardless  of which state's plan you use. I think some states do require you to use their plan, so read the fine print.

[SpicyUnagi10]

Why the Nevada plan, is that just the lowest available fees wise in the USA?

Edit: Nevermind I'm dumb, it's just through that state.

[radram]

Want to open one before EoY for my newborn dd.

Wondering what options people used, even if not in Wisconsin, instead of WI Edvest.

I don't see any reason to use the state plan, when I can open one w/ Vanguard. Looks like I still get the state income credit regardless.

According to Vanguard, their plan does NOT give you the tax break in Wisconsin:
https://personal.vanguard.com/us/whatweoffer/college/finda529Popup.jsf

Congratulations on starting young. In case you are wondering, we added $3,000 per year for our now 19 year old. Even through "the lost decade", it is enough for a 4 year degree, with housing, food, tuition, the works, at UW-Madison.

We are very happy with Edvest, the WI 529. I recommend full aggressive until your child enters high school, being full guaranteed by senior year.

You are setting up your child for success. The rest will be up to her.

[SpicyUnagi10]

Was that the age based, index, or active aggressive?

I hope they indefinitely write off the 10 basis point WI asset fee; bad enough one of the big active houses is charging 8 basis points on top of the fund fees...

Thank you for the input. Wife and I can both open an account in our names, since it's per beneficiary, and sock away $6,400 annually for 2018? I was reading assets in dd's or any child's/grandchild's name will be counted against him/her for any financial aid more heavily, otherwise I'd open a 3rd.

[radram]

Was that the age based, index, or active aggressive?

I hope they indefinitely write off the 10 basis point WI asset fee; bad enough one of the big active houses is charging 8 basis points on top of the fund fees...

Thank you for the input. Wife and I can both open an account in our names, since it's per beneficiary, and sock away $6,400 annually for 2018? I was reading assets in dd's or any child's/grandchild's name will be counted against him/her for any financial aid more heavily, otherwise I'd open a 3rd.

I just went 100% Large Cap Stock Index Portfolio .14% annual fee all in. Now that she is in college, she is 100% Principle plus interest.

The $3200 limit is the max allowed for a state tax deduction per future college student, NOT per person contributing or per account you place it in. You and your wife, combined, can place $3200 into an account for your child that can receive a state tax free benefit. That is all.

You can still place up to $30,000 into the account this year(qualifying as a a $15,000 gift from each of you), but it will not receive a tax benefit above the $3200 limit. For that reason, I would not recommend contributing that much under normal circumstances

[ScreamingHeadGuy]

Was that the age based, index, or active aggressive?

I hope they indefinitely write off the 10 basis point WI asset fee; bad enough one of the big active houses is charging 8 basis points on top of the fund fees...

Thank you for the input. Wife and I can both open an account in our names, since it's per beneficiary, and sock away $6,400 annually for 2018? I was reading assets in dd's or any child's/grandchild's name will be counted against him/her for any financial aid more heavily, otherwise I'd open a 3rd.

I just went 100% Large Cap Stock Index Portfolio .14% annual fee all in. Now that she is in college, she is 100% Principle plus interest.

The $3200 limit is the max allowed for a state tax deduction per future college student, NOT per person contributing or per account you place it in. You and your wife, combined, can place $3200 into an account for your child that can receive a state tax free benefit. That is all.

You can still place up to $30,000 into the account this year(qualifying as a a $15,000 gift from each of you), but it will not receive a tax benefit above the $3200 limit. For that reason, I would not recommend contributing that much under normal circumstances

The contributions, in excess of the deductible amount, can be carried forward to be used in future years’ Tax returns.  (Similar to capital losses.)

[soccerluvof4]

From WI and have used the Wisconsin 529 as a vehicle for college for all 4 of my kids. I have found it nice that there are a lot of options and settings for risk, very simple to use ,and I have had very good support from them with questions. As far as time goes you can pretty much put money into the fund and count toward 2018 up until/before you do your taxes as long as you so them on time and claim the deduction.

[reeshau]

Was that the age based, index, or active aggressive?

@SpicyUnagi10 , you made me do a double-take.  I suppose active aggressive is better than passive aggressive...

[SpicyUnagi10]

Was that the age based, index, or active aggressive?

@SpicyUnagi10 , you made me do a double-take.  I suppose active aggressive is better than passive aggressive...

Oops my grammar is showing. I may end up using the active fund, haven't decided yet.