529 Plan

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  1. 12 Savvy Year-End Tax Moves

    Headlines

    Thu, 23 Oct 2014

    and Administrators . <PAGEBREAK>If you would like to contribute money toward a child’s education, consider a 529 plan account . Contributions are generally considered to be removed from your estate. You can also make a payment directly to an educational institution

  2. Best way to save for son's college

    Commentary

    Thu, 23 Oct 2014

    seem to be any benefit to investing in our own state's 529 plan . Also our employers do not provide a 401k match so we are ..... s about the max we can save. Anything that goes to a 529 or anything else would be coming out of that amount. Age

  3. 5 Upgrades, 10 Downgrades in Our 529 Ratings

    Video Reports

    Thu, 23 Oct 2014

    she is the senior fund analyst of 529 plans for Morningstar. Kathryn ..... of the changes with this year's 529 plan ratings? Spica: We've rated 64 ..... also look at the state. So, every 529 plan is sponsored by a state. They have

    529 found at 0:07, 3:28, 4:06

    For Morningstar, I'm Adam Zoll. Morningstar has released its updated ratings for 529 college-savings plans, and here to tell us what's new is Kathryn Spica, she is the senior fund analyst of 529 plans for Morningstar. Kathryn, thanks for being with us. Kathryn Spica: Thanks for having me. Zoll: Kathryn, let's get right to it. What are some of the changes with this year's 529 plan ratings? Spica: We've rated 64 plans this year, we had five upgrades and ten downgrades. And even though we've downgraded more plans
    Total Return Fund (PTTRX). How has the upheaval at PIMCO affected the 529 space? Spica: A lot of actively managed 529 plans use PIMCO for their bond exposure or for a significant portion of their bond exposure. So, we've seen changes at a
    from Gold to Bronze. Has the Medalist rating of any of the 529 plans that were using PIMCO or are using PIMCO been affected? Spica: That's another good question. The PIMCO fund itself still is
  4. Where College Planning Stands Today

    Video Reports

    Thu, 23 Oct 2014

    Get the latest read on tuition inflation, the best values, financial aid trends, mounting student debt, and more from Edvisors' Mark Kantrowitz.

  5. Staying Local Benefits College Savers in These States

    Headlines

    Thu, 23 Oct 2014

    savers can go with an out-of-state 529 plan without giving up any local tax perks ..... deduct contributions to any state's 529 plan from their state taxable income ..... family does not need to contribute to a 529 plan to claim the gift. Grant programs

  6. Is a 529 College-Savings Plan Right for You?

    Video Reports

    Wed, 22 Oct 2014

    great tax benefit for investing in a 529 plan . For one, all of them are exempt ..... once I've decided I want to use a 529 plan to save for college, how do I know ..... research plans is Morningstar's 529 Plan Center on Morningstar.com, where

    529 found at 0:14, 2:20, 3:06

    answers is Kathryn Spica, she is a senior fund analyst on Morningstar's 529 research team. Kathryn, thanks for being with us. Kathryn Spica: Thanks for having me. Zoll: So, let's talk about the pros and cons of a 529 college-savings plan first. What are some of the advantages and what are some of the disadvantages? Spica: You get a really great tax benefit for investing in a 529 plan . For one, all of them are exempt from federal capital gains tax. So, any of the growth in your assets is exempt from that tax, which is a compelling reason to look. A lot of states also offer benefits. For many, you can get a tax credit or a tax deduction on your contributions. That will really reduce your taxes at the state level and some states also offer grants or other scholarship opportunities. Zoll: How about the downside? Is there any negative to using a 529 to save for college? Spica: They'll be a little bit more restrictive than a taxable account, for example. So, you have a limited set of investments for the most part. The fees can be a little bit higher. There are multiple levers of oversight. There is generally a smaller asset base to spread out the costs among. So, those are some of the options that you have to consider as you're making the choice about what vehicle is right for you. Zoll: When you say the fees are higher, they are higher versus investing outside of the 529 wrapper in a comparable mutual fund? Spica: Exactly. On top of the underlying fund fees, there is usually a program management fee, sometimes there is a state fee. So, there are some other layers of costs that get included in a 529 option. Zoll: So, maybe weighing those tax benefits versus the added cost is the way to go? Spica: Exactly. In most cases,
    10% penalty. Zoll: So, once I've decided I want to use a 529 plan to save for college, how do I know if I'm getting a good deal and choosing the best plan for me? Spica: You want to look at your home state first. You want to see what type of advantage you have by staying with your home state plan. If you have a tax deduction, it's usually a compelling reason to stay. If you don't have one, for example, or if you just want to make sure that you're getting the best value, look around nationally. There are a lot of 529 options that are really compelling. So, you want to look for states that have strong oversight and have strong managers included in
    Zoll: And one place viewers can go to research plans is Morningstar's 529 Plan Center on Morningstar.com, where we have our analyst ratings for various funds around the country. Spica: We rate 64 plans, so we represent about 95% of the assets that are available in 529 college-savings plans. It's a good place to start. You can look at our analyst rating, which is our prediction of which plans
  7. Don't Get Sent to the 529 Penalty Box

    Headlines

    Tue, 21 Oct 2014

    tax advantages. Contributions to a 529 are not deductible on federal income ..... on contributions made to in-state 529 plans. So what happens if the money ..... if you contributed $5,000 to a 529 plan --and over time it grew to $7

  8. Could Rising Interest Rates Crunch Your 529 ?

    Headlines

    Tue, 21 Oct 2014

    sensitivity of a single bond fund, most 529 accounts hold multiple stock and bond ..... entire portfolio. Even though your 529 plan may not provide information on the ..... this is by visiting Morningstar's 529 Plan Center and clicking on the state that

  9. Choice of 529 Plan Type Not Set in Stone

    Headlines

    Tue, 21 Oct 2014

    Virginia, and Washington, plus there is a prepaid 529 plan for use at private colleges. Assets may be transferred from any prepaid 529 plan to any 529 college-savings plan and vice versa once every 12

  10. Morningstar Names Best 529 College-Savings Plans for 2014

    Headlines

    Tue, 21 Oct 2014

    on contributions to the state's 529 plan , a benefit that can reduce a college ..... quality lineup. Wisconsin's EdVest 529 Plan also was added to the Bronze-rated ..... list, Arizona's Ivy Funds InvestEd 529 Plan , also has seen its share of disruption

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