Author Topic: Edward Jones 529 plan - worth contributing to?  (Read 2551 times)

tariskat

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Edward Jones 529 plan - worth contributing to?
« on: August 14, 2014, 09:32:58 AM »
Hi friends,

I have a niece and would like to contribute money to her future for a while (she is too young to remember whether or not I got her an actual present, and possibly to know why she gets presents at all, still).  She has a 529 through Edward Jones.  I have heard extremely underwhelming things about EJ for every other retirement plan, so does anyone here have knowledge or experience with their college savings plans?

MDM

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Re: Edward Jones 529 plan - worth contributing to?
« Reply #1 on: August 14, 2014, 09:52:05 AM »
Don't know for sure about all 50 states, but you may not need to go through a broker at all.  E.g., see Michigan's and Utah's sites where you can invest directly.

tariskat

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Re: Edward Jones 529 plan - worth contributing to?
« Reply #2 on: August 14, 2014, 03:02:57 PM »
There is an existing Edward Jones 529; if I didn't want to do that particular plan, I would basically have a start a new account for her.

yddeyma

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Re: Edward Jones 529 plan - worth contributing to?
« Reply #3 on: August 14, 2014, 04:30:46 PM »
I live in GA and if I contribute to their 529 I get a deduction on my state taxes.  I believe you can open your own 529, you would be the "owner" of the account and she would be the "beneficiary".

I favor contributing to Roth IRA's before doing 529's, anyway.  You can still pull the money out for education expenses without a penalty, but then you don't get hit with the penalty if you end up not using it (she gets a scholarship or doesn't go to college).  I know you want something that's "hers", but I'd contemplate doing a Roth for yourself first and you could always withdraw to pay for her education later.  You'll have to check with the IRS, but I believe you can pull from your Roth for education expenses as long as the person is related to you.  Should be in either Publication 590 or 970.

tariskat

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Re: Edward Jones 529 plan - worth contributing to?
« Reply #4 on: August 15, 2014, 08:04:50 AM »
Oh! That never crossed my mind.  Thanks for the info.