I know there have been many older threads addressing this topic and I went through most of them. I still have some questions -

I live in Texas now but, if I bought a plan from another state where they have state tax,

1) do I have to pay any taxes there now? Guessing I don't have to but, wanted to check
2) also, if there is any remaining money when my kid gets done and I want to withdraw the balance do I have to pay state taxes to the state I bought the plan from? Yes, I understand I will have to pay fed tax and a penalty.

I have narrowed down my choices to NY and Utah's plans. NY seems to have lower fees than Utah. Is there anything I need to know before I go ahead and buy the NY plan?

I opened a NY account a couple of weeks ago. Think the penalties are all the same but will let someone else weigh in on that.

quote:

---

I know there have been many older threads addressing this topic and I went through most of them. I still have some questions -

I live in Texas now but, if I bought a plan from another state where they have state tax,

1) do I have to pay any taxes there now? Guessing I don't have to but, wanted to check
2) also, if there is any remaining money when my kid gets done and I want to withdraw the balance do I have to pay state taxes to the state I bought the plan from? Yes, I understand I will have to pay fed tax and a penalty.

I have narrowed down my choices to NY and Utah's plans. NY seems to have lower fees than Utah. Is there anything I need to know before I go ahead and buy the NY plan?

---

1 - no
2- no - I have never thought of that and could see how those states may want to get the $ back from the tax break, but no way to track it easily

quote:

---

I know there have been many older threads addressing this topic and I went through most of them. I still have some questions -

I live in Texas now but, if I bought a plan from another state where they have state tax,

1) do I have to pay any taxes there now? Guessing I don't have to but, wanted to check
2) also, if there is any remaining money when my kid gets done and I want to withdraw the balance do I have to pay state taxes to the state I bought the plan from? Yes, I understand I will have to pay fed tax and a penalty.

I have narrowed down my choices to NY and Utah's plans. NY seems to have lower fees than Utah. Is there anything I need to know before I go ahead and buy the NY plan?

---

1. No
2. No, as long as you don't live in a state with state income tax. You can also manage withdrawels from 529's to manage taxes, i.e. Principal can come out FIFO with no tax consequences, allowing tax free earnings to be used "first" to pay for expenses. Use the earnings on qualified expenses, then use the principal to qualify for the American Opportunity Tax Credit (if below thresholds) in later years after the 529 earnings are exhausted. (Hypothetically, of course, this is not specific tax advice, consult your tax advisor.)

I prefer the Utah plan to NY primarily because I can access DFA funds in UT's. The cost differences are deminimus, IMO.

At the time I chose - over 7 years ago, I had narrowed my choice down to Utah, NY and Iowa. I know Clark Howard is pretty high on Utah and NY, FWIW.

I have been happy with Utah, although not much to do when it is a "set it and forget it type account"

I opened a NY plan for my daughter about 2 years ago. I remember having it narrowed down between UT an NY. I believe I picked NY due to more investment options.

Thanks for all the comments. Figured I couldn't go wrong with either Utah or NY plans. So, Just went with Utah which has a marginally higher fees but, also has some features I liked including the DFA option.

15-20 yr window so need to get more conservative over time.

What are the advantages of the Utah and New York plans versus a home state plan for a Texas resident?

quote:

---

What are the advantages of the Utah and New York plans versus a home state plan for a Texas resident?

---

Lower fees and better investment choices on the NY and Utah plans. You get no benefit from using the Texas plan by being a resident of the state.

It doesn't work that way if you are a resident in a state with state income tax. Then you would choose your states 529. Texas doesn't tax income, so it doesn't matter for us. Just go with lowest fees and you preferred investment broker.

I went with NY, because Vanguard is my preference.

If i do ny and ny family members gift to it do they get a state tax break?

Has there been any more word on the feds putting extra tax on 529. I remember Obama mentioning it a year or two ago, but is it shelved? I have a 529 for both kids but thinking of only partially funding the 529 and using other savings options to fund the rest of their schooling (17 years from now) to reduce any risk of future government tax.

it got shot down pretty quick, it was very unpopular to the voting class of both R's and D's.

I use Nevada, also VG funds. I don't keep an account for each child - too many accounts to manage.

When should one start investing in this if you'd like to fund your kids' college 100%?

quote:

---

When should one start investing in this if you'd like to fund your kids' college 100%?

---

Yesterday

quote:

---

quote:

---

When should one start investing in this if you'd like to fund your kids' college 100%?

---

Yesterday

---

Haha. I don't have kids yet.

I know there are a lot of variables, but I would like some opinions on when the best time to start would be.

quote:

---

quote:

---

quote:

---

When should one start investing in this if you'd like to fund your kids' college 100%?

---

Yesterday

---

Haha. I don't have kids yet.

I know there are a lot of variables, but I would like some opinions on when the best time to start would be.

---

Depends on what school, when you're going to have kids, how aggressive you are in the plan, how much money you have to put in the plan, how lucky you get with when you start funding, etc.

Tons of variables.

Earlier is better, and a doable and meaningful amount of money. Just keep in mind, there's only one way to retire, and there are multiple ways for one to fund college.

You can start even earlier. Open it in your name and then transfer to your kid.