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Thread: Too much $$$ in a 529 plan???

  1. #1

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    Default Too much $$$ in a 529 plan???

    So i am starting to wonder if there is a thing of having too much in a 529 plan. Any thoughts on a number?

    i have two kids and i have socked away already 90k for one who will go to college in 4.5 years. The other childs account has 60k in it and has 8.5 years until college. Is this going to be too much? Final numbers by college age look to be about $125k and 140k unless everything falls apart.

    But lets say they go to a state school or get a partial scholarship? Leaving a large dollar amount in the fund. Could i hold that account for my childrens children?
    11.80% for 2012, 24.79% for 2013, -5.13% for 2014 , 4.94% for 2015 WTF?, -0.04% for 2016 , 11.11% for 2017======= 7.91% six year average


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  3. #2

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    Default Re: Too much $$$ in a 529 plan???

    Quote Originally Posted by rktect1 View Post
    So i am starting to wonder if there is a thing of having too much in a 529 plan. Any thoughts on a number?

    i have two kids and i have socked away already 90k for one who will go to college in 4.5 years. The other childs account has 60k in it and has 8.5 years until college. Is this going to be too much? Final numbers by college age look to be about $125k and 140k unless everything falls apart.

    But lets say they go to a state school or get a partial scholarship? Leaving a large dollar amount in the fund. Could i hold that account for my childrens children?
    Good job in planning for their education. It all really depends on your children and where they go to college. If one doesn't need as much as set aside or decides not to go to school, the money can be transferred to another family member. See Chapter 8 of IRS Publication 970 on Qualified Tuition Plans (QTP) https://www.irs.gov/pub/irs-pdf/p970.pdf The section on Rollovers indicate eligible family members.

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  5. #3

    Default Re: Too much $$$ in a 529 plan???

    well in about 4 years you can adopt my kid if you want...

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  7. #4

    Default Re: Too much $$$ in a 529 plan???

    If the money is not used for college expenses by a relative, when the money is taken out of the account then taxs must be paid on gains PLUS a 10% penalty.

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  9. #5

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    Default Re: Too much $$$ in a 529 plan???

    Quote Originally Posted by McDuck View Post
    If the money is not used for college expenses by a relative, when the money is taken out of the account then taxs must be paid on gains PLUS a 10% penalty.
    How will they decide which portion was "gains" The gains are what I want to spend on college first. If anything is leftover, that was my initial investment.

    It has been about 9 months since I originally posted this and their accounts now have $104k and $70k I would say that its been a good nine months for certain. I moved the $104k out of Upromise and into Vanguard 529 plan and its now in a medium/low growth fund. Just need 5% plus my contributions and he will have about $140K when he starts school. I have eight more years to grow the $70k into $140k which seems doable to me unless the economy collapses like 2008
    11.80% for 2012, 24.79% for 2013, -5.13% for 2014 , 4.94% for 2015 WTF?, -0.04% for 2016 , 11.11% for 2017======= 7.91% six year average

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  11. #6

    Default Re: Too much $$$ in a 529 plan???

    That is awesome. I researching it for my grandkids, 4 and 1 years old.

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  13. #7

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    Default Re: Too much $$$ in a 529 plan???

    Quote Originally Posted by McDuck View Post
    That is awesome. I researching it for my grandkids, 4 and 1 years old.
    I started these basically once I had their social security numbers. $300 per month religiously.
    11.80% for 2012, 24.79% for 2013, -5.13% for 2014 , 4.94% for 2015 WTF?, -0.04% for 2016 , 11.11% for 2017======= 7.91% six year average

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  15. #8

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    Default Re: Too much $$$ in a 529 plan???

    Quote Originally Posted by McDuck View Post
    That is awesome. I researching it for my grandkids, 4 and 1 years old.
    We are looking into it also. A 3 year old, almost 4 and two more on the way.
    May the force be with us.

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  17. #9

    Join Date
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    Default Re: Too much $$$ in a 529 plan???

    Quote Originally Posted by rktect1 View Post
    I started these basically once I had their social security numbers. $300 per month religiously.
    A great investment.
    May the force be with us.


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