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Is there a benefit to opening multiple 529 College Savings plans for your child?

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NASP09
...

Member since 6/05

6030 total posts

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Is there a benefit to opening multiple 529 College Savings plans for your child?

DS already has two 529 College Savings accounts (one opened by us, one opened by my father). Now another relative wants to open a third 529 account in his name. Is there a benefit to this? I would think it would be easier to just deposit the money into one of the already existing accounts....
Am I missing something?
Thanks

Posted 1/17/14 10:44 AM
 
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alli3131
Peanut is here!!!!!!

Member since 5/09

18388 total posts

Name:
Allison

Is there a benefit to opening multiple 529 College Savings plans for your child?

We jsut have relatives write checks and we deposit them into DS 529.

Posted 1/17/14 10:53 AM
 

MsSissy
xoxoxo

Member since 3/07

39159 total posts

Name:

Re: Is there a benefit to opening multiple 529 College Savings plans for your child?

Do they get a tax write off for it if they open their own for the child?

Posted 1/17/14 10:54 AM
 

stinger
LIF Adult

Member since 11/11

4971 total posts

Name:

Re: Is there a benefit to opening multiple 529 College Savings plans for your child?

I would think no on any investment, the more balance you have the more return you are going to get.

Posted 1/17/14 10:59 AM
 

nferrandi
too excited for words

Member since 10/05

18538 total posts

Name:
Nicole

Re: Is there a benefit to opening multiple 529 College Savings plans for your child?

There is no benefit or real down side either. The main difference is how high of a risk category they chose. They would still be able to get the write off if they just give you the check to out into the account.

Posted 1/17/14 11:10 AM
 

MegZee
My bunny

Member since 5/06

8777 total posts

Name:
Meaghan

Re: Is there a benefit to opening multiple 529 College Savings plans for your child?

Posted by MsSissy

Do they get a tax write off for it if they open their own for the child?



I believe so. Which is why they would want to open one themselves

Posted 1/17/14 11:23 AM
 

MegZee
My bunny

Member since 5/06

8777 total posts

Name:
Meaghan

Re: Is there a benefit to opening multiple 529 College Savings plans for your child?

Posted by nferrandi

They would still be able to get the write off if they just give you the check to out into the account.



Not true

From nysaves:
What tax benefits can I get from the Direct Plan?
New York State taxpayers can deduct up to $5,000 ($10,000 for a married couple filing jointly) of contributions to their Direct Plan account from their state taxable income each year. This may be subject to recapture in certain circumstances such as rollovers to another state's plan or nonqualified withdrawals. However, contributions are not deductible for federal income tax purposes. Learn more about the tax benefits of New York's 529 Direct Plan on the full site. Note: Only the account owner may take advantage of the tax deduction for his/her contributions to his/her account.

Message edited 1/17/2014 11:26:15 AM.

Posted 1/17/14 11:24 AM
 

CookiePuss
Cake from Outer Space!

Member since 5/05

14007 total posts

Name:

Re: Is there a benefit to opening multiple 529 College Savings plans for your child?

The benefit is to the person that owns it. If the 3rd person opens it and owns it, they get the tax benefit as well as maintaining control of it.

Posted 1/17/14 11:30 AM
 

NASP09
...

Member since 6/05

6030 total posts

Name:

Re: Is there a benefit to opening multiple 529 College Savings plans for your child?

So isn't it somewhat self serving for them to open a 3rd account instead of giving us the money to deposit?

Is it normal for kids to have multiple accounts?

Message edited 1/17/2014 5:00:31 PM.

Posted 1/17/14 4:58 PM
 

Peaches77
LIF Adult

Member since 1/10

993 total posts

Name:
Me

Re: Is there a benefit to opening multiple 529 College Savings plans for your child?

Posted by NASP09

So isn't it somewhat self serving for them to open a 3rd account instead of giving us the money to deposit?

Is it normal for kids to have multiple accounts?



I don't think so; they benefit from the tax deduction (in NYS they only get the deduction if it's a NY529 Plan) and your child gets the benefit of the use of the money when they go to college.

It's kind of a win win for all. IMHO.

Posted 1/17/14 5:34 PM
 

Jbon630
LIF Adult

Member since 12/11

1340 total posts

Name:

Re: Is there a benefit to opening multiple 529 College Savings plans for your child?

Posted by Peaches77

Posted by NASP09

So isn't it somewhat self serving for them to open a 3rd account instead of giving us the money to deposit?

Is it normal for kids to have multiple accounts?



I don't think so; they benefit from the tax deduction (in NYS they only get the deduction if it's a NY529 Plan) and your child gets the benefit of the use of the money when they go to college.

It's kind of a win win for all. IMHO.



I wouldn't encourage others to have 529s for your kids. When the parents have a 529 it will count as assets when they apply for financial aid, but if anyone besides the parent has one it will count as income, lowering their financial aid.

Posted 1/17/14 6:13 PM
 

luvmyReese
Hello Kitty

Member since 1/08

7542 total posts

Name:
Catt

Re: Is there a benefit to opening multiple 529 College Savings plans for your child?

Posted by Jbon630

Posted by Peaches77

Posted by NASP09

So isn't it somewhat self serving for them to open a 3rd account instead of giving us the money to deposit?

Is it normal for kids to have multiple accounts?



I don't think so; they benefit from the tax deduction (in NYS they only get the deduction if it's a NY529 Plan) and your child gets the benefit of the use of the money when they go to college.

It's kind of a win win for all. IMHO.



I wouldn't encourage others to have 529s for your kids. When the parents have a 529 it will count as assets when they apply for financial aid, but if anyone besides the parent has one it will count as income,
lowering their financial aid.



Was just thinking this.

Posted 1/17/14 8:24 PM
 
 

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