529 Plan Alternatives
August 12th, 2010
Question: Are there any alternatives to a 529 Plan to help save for my daughter’s education?
Answer: If a 529 doesn’t sound appealing, you can always make withdrawals, (penalty-free) from an existing IRA account for any educational costs. However, there are contribution and withdrawal limits and not everyone can qualify for an IRA.
If you plan on contributing less than $2,000 a year a Coverdell account is definitely the way to go (assuming you make less than $110,000 a year, single or $220,000). 529’s are really designed for larger contributions.
Good luck.
Steve Wynn Dream Syndicate at The 529 5-15-10
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