Author Topic: What 529 to invest in if we're planning to move but don't know where yet.  (Read 2349 times)

gillamnstr

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Hi all-

Here's the situation. We have a 2yo and I have just emerged from the baby and pandemic/political insanity fog that was 2020 to realise I need to get my financial house in order for my kiddo's college. We have been saving in plain old savings account but I'd like to do something fancier.

Here's the deal: We live in Louisiana but my husband is looking for another job but we're not sure where we'll land yet. WE ARE DEFINITELY MOVING WE JUST DON'T KNOW EXACTLY WHEN OR WHERE.

Should we just go ahead and join the Louisiana plan for the tax break? Are these able to be transferred to other state plans later? Any advice much appreciated.

Thank you!

nereo

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Your can invest in any states 529 plan, even if you have never been there. Some states have offerings that are better than others. You can also hold 529s in multiple states - there is no limit (well... I suppose 50 if you want to get technical).

So - if you are moving out of state an  D.C. losing the state income tax benefit Id just open an account with whatever state has the plan for you (which may of may not be your state of residence). As contributions are post tax it might make things easier to put funds in a holding account and then invest them all once you know if your future state had any additional benefits for residents.

travel2020

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As nereo stated, you can invest in any states plan, though you might lose out on some tax breaks by being in a different state.

Vanguard has a generic as well as some state-specific options. ER is good as expected. See this link for some additional guidance: https://investor.vanguard.com/529-plan/what-to-look-for


secondcor521

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Are these able to be transferred to other state plans later?

Yes.

https://www.savingforcollege.com/article/how-to-transfer-your-529-plan-to-another-state

Note that you can only do one rollover per beneficiary in any 12-month period, but if you're just doing it because you moved states, that probably won't be an issue for you.

ctuser1

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I'd vote for our state's plan - Connecticut. https://www.aboutchet.com/

It recently moved to Fidelity and uses the low cost fidelity index funds. Till last year it was managed by TIAA-CREF.

I also have money in the New York plan. I am a non-resident taxpayer in NY State, and it allowed for deductions for contributions till last year. Now that there is no tax implication, I am going to fund a new CHET account instead of putting the money in the new york plan.

There are many other options. Now a days almost all of them are pretty good. So I think it just comes down to your convenience. Maybe check if any state's plan is run through your preferred broker and use that?