Welcome to the MDTAXES Message Board

The MDTAXES Network is an affiliation of CPAs that specialize in the tax planning and preparation for young health care professionals.  Please leave your questions or comments for our CPAs, who visit the message board regularly, or review the answers, suggestions and ideas posted in response to your colleagues' questions.

Please check out our other Message Boards available at www.FindAGoodCPA.com.

Please note: We are NOT affiliated with the Maryland Tax Department. If you're looking for information about Maryland income taxes, go to www.marylandtaxes.com.

Original MDTAXES Forum
Start a New Topic 
Author
Comment
Re: 529 Plans


The 529 Plan is a great way to save for your child's education. Even if the current rules expire in 2010, I still think that contributing money into a 529 account on behalf of your child makes sense for the following reasons:




1. Money invested within a 529 account grows tax-deferred (and at some time, the stock market has to go up again).




2. Money contributed to the 529 account is money earmarked specifically for your child's education.




3. Even if the rules revert to the original 529 rules, when the money comes out, the earnings will only be taxed at your child's rate, who will most likely be in the lowest tax bracket during college.




And I'm putting my money where my mouth is with 529 plans. I have a 4 year old son and a 3 year old daughter, and am contributing money into a 529 plan for each of them.




One potential downside to 529 plans is that they may impact the financial aid that you're ultimately eligible to receive.



--- --- --- --- --- --- --- --- ---

Replying to:

I recently gave birth to our first son and he hopefully will enter college around 2020. Should I trust that Congress will vote to continue the great tax savings of the 529 plans, which will expire in 10 years, or should I invest in some other vehicle?

Zip Code: cpa@mdtaxes.com