Fun with Five Twenty Nine Plans
 

Anyone funding 529 plans to get money out of their taxable estate, eliminate having to pay income tax on its earnings and/or to get their beneficiaries started with Roth IRAs?

529 Plans for Estate Planning: Avoiding the Estate Tax

I'd rather purchase mutual funds for the beneficiaries. Yes capital gains and dividends would be taxable to the beneficiary annually but earnings would far exceed any from a 529. Once the beneficiary begins to work they can move money every year to a Roth IRA without a total amount limitation ($35,000 for 529 holder).

Ii just never saw any real benefit for the 529.

Still a resident of another state, with an income tax. 529 contributions are deductible against other earnings, so it's an added bonus to contribute for the grandkids.

My concern is that by the time they get to 18, college will be a thing of the past. Some schools are already on the verge of bankruptcy, and more people will be opting for the trades bc of AI. I don't see brick and mortar universities being a thing in 15 years. Time will tell.

Maybe it’s all those fines……..