Archive for February, 2009
College Savings Tax
February 3rd, 2009
Question: Can I contribute to a tax deferred college fund for myself?
Since I am single and I don’t own a house or anything like that, I pay a lot in taxes. I plan to start an MBA program Fall 2007 and I just want to know if opening a PRE TAX college savings account would be possible and beneficial for me. Is it even possible for me to do so if I will be withdrawing the money in one year?
To get the best answer points, please be as thorough and informative as possible. Links to relevant sites are welcomed and appreciated! (hint)
BTW – I am not looking in to opening one to make money in interest, I am trying to save money on my paycheck by reducing the taxable income. I guess that fosters the question, HOW WILL THE MONEY BE TAXED ONCE I START WITHDRAWING THE MONEY?
Answer: Yes you could but it would not provide much benefit if you were going to use the money within one year of starting the fund. Most of these plans grow tax free and you would have very little growth in that time frame.
College Savings Plans of Maryland Question About Tax Benefits
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