Saving for kids college with a bigger family

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  • #80789 Reply

      We have 6 kids ages 10,9,8,7,3 and 1.

      Right now I’ve just been putting $700 a month into an S&P 500 with the intentions of using that for college if the kids choose to go that route.

      Are other any families opting to not use a 529, and if so, what are you using?

      #80790 Reply

        Thank you for asking. Great question and information.

        #80791 Reply

          College of the Ozarks is a great school and tuition is free. They work as they learn.

          #80792 Reply

            We used a 529 for our 7 kids. 600/mth. Now we are cash flowing the remainder, and so far it is working. Our oldest 3 attend a private college and with scholarships, savings, and us paying 2000/mth, we have graduated one already and other 2 are on there way! Just work the plan, adjusting for what works for your family!

            #80793 Reply

              Before, I was back and forth between a 529 and a Roth. Both are good options if you can swing it. Like someone suggested, there are changes happening in 2024 to roll over a certain amount of money from a Roth to a 529: “529 plan beneficiaries can roll over up to $35,000 to a Roth IRA over their lifetime. Rollovers are subject to Roth IRA annual contribution limits. The 529 account must be more than 15 years old. 529 to Roth IRA rollovers can be made beginning in 2024.”

              #80794 Reply

                My wife and I and my dad opened a UTMA (universal transfer to minor) account for our daughter. We manage it until she is 18 then it’s all hers. You have some freedom to invest that you can’t in other accounts. The money is taxed when it’s withdrawn, but at our daughters’ tax rate when she takes it out, so not much likely. However, with the new laws around 529s, we opened one of those for her as well. We wanted funds for college, but not necessarily exclusively for college.

                #80795 Reply

                  Theres a new law starting 2024. 529s can be used for your kids Roth IRAs after having been opened for 15 years. Makes a good option if they decide not to use for schooling. They would have a nice Jumpstart on a Roth IRA.

                  Wanted to add this too. It’s only up to $35,000 over their lifetime

                  Beginning in 2024, beneficiaries of 529 accounts will have the option to roll over up to $35,000 over the course of their lifetime to their Roth IRA . Can only add the allowed Roth IRA max per year.

                  You can also get tax deductions on your 529s by opening with some states.

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