Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
529 Plan Mistakes That Cost Parents Thousands
Most parents think a five-oh-two-nine plan is a set-and-forget retirement account for education, but the tax math is far more nuanced. We examine the specific trap of commingling state tax deductions with federal withdrawal rules, using a hypothetical family in California versus New York to show how contribution timing can trigger unexpected liabilities. Lucas breaks down the 'use it or lose it' reality of state tax caps and why rolling over excess funds into a sibling's plan might be cheaper than leaving them idle. Luna challenges the assumption that higher contributions…
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