Author Topic: Best education savings vehicle in California  (Read 246 times)

affordablehousing

  • Bristles
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Best education savings vehicle in California
« on: December 06, 2018, 03:37:06 PM »
Hi gang, What is the best savings mechanism for school (high school and college) if you live in California? It seems the 529 provides no state tax relief so wondering what the hive mind found most beneficial. Family members have asked about contributing.

Gin1984

  • Magnum Stache
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Re: Best education savings vehicle in California
« Reply #1 on: December 08, 2018, 07:53:50 AM »
You could use a custodial account, assuming you are planning to use it up in high school.

ManyMountains

  • 5 O'Clock Shadow
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Re: Best education savings vehicle in California
« Reply #2 on: December 17, 2018, 10:53:56 PM »
We are also in California and had the same question. I can't tell you which is better - a custodian account or 529 - assuming you are the one managing it.

With no tax benefit to us, we opted to have my wife's parents open up the 529 account for our children through Vanguard. The grandparents do receive a tax benefit in their state. Also, it helps our children because a 529 managed by the grandparents does not count towards assets for Financial Aid, though it would count if we managed the 529. Also, they're

So, this doesn't directly answer your question but might offer you an idea on how you could optimize your situation by thinking outside the box.

Another consideration is that a Roth IRA allows you to take out money penalty free prior to 59.5 years of age, if it is used for your childrens' college costs.