Author Topic: My parents RMDs and 529s  (Read 636 times)

jeromedawg

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My parents RMDs and 529s
« on: February 06, 2018, 07:07:51 PM »
Hey all,

Looking for some tips on 529s and best options out there. I have one for our son that I opened which has a target fund (NHX203309 - NH Portfolio 2033). Haven't opened one yet for our daughter but my sister-in-law recommended Utah for whatever reason...

That said, my parents have been wanting to set their RMDs on a quarterly basis to go to our kids' 529s. Is that even a good idea? If the option exists to take cash, should we just do that? And have them distribute in a specific account besides a 529? I'm assuming you cannot distribute into a tax-advantaged account at this point....
I'm least familiar with 529s and RMDs so will probably start reading up more. But given some 'decisions' my parents have made previously about investments and giving stock-picked funds to our kids, I sort of lean away from accepting anything but cash from them. We also have UTMAs if that makes any difference...

TIA

One other question too actually, should I consider moving my funds out of the target fund (NHX* above) and into another fund out of state that may offer better options? I think I saw that NY and Nevada offer the choice to invest in lower cost Vanguard funds.
« Last Edit: February 06, 2018, 07:28:35 PM by jeromedawg »