Why Would a Tax Advisor Discourage 529 Plan College Savings? - 452

Your Money, Your Wealth

Realestate, Income, Investing, Personalfinance, 401k, Rothconversion, Retirement, Education, Taxes, Socialsecurity, Personalfinances, Finance, Retirementplanning, Investments, Stocks, Business, Roth, Fiduciary, Ira

2.3 • 681 Ratings

🗓️ 24 October 2023

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Why does Becca in Florida’s advisor "poo-poo" her strategy for funding 529 plans for education? Keith, commenting on Spotify, wants to know about reimbursing yourself from a 529 plan for the scholarship amount used for education without penalty, and Wendy way up in New York wants to know if she should use retirement funds to pay for college and home renovations. Plus, what are the pros and cons of starting Roth conversions for Renee in Wisconsin, and is she on track for retirement? Will the IRS penalize Dan in Michigan for not paying Roth conversion tax in January? With the 5-year Roth clock, how does compounding interest work when Aaron in Ohio changes custodians? And Kirk in Iowa wonders how the Affordable Care Act tax credit works with dependents.

Timestamps:

00:55 - Why Doesn’t My Financial Advisor Want Me to Fund 529 Plans? (Becca, FL)
08:19 - Is 529 Plan Self-Reimbursement for Scholarships Okay? (Keith)
10:22 - Should We Use Retirement Funds to Pay for College and Home Renovations? (Wendy, way up in north NY)
18:11 - Pros and Cons of Starting Roth Conversions: Are We On Track for Retirement? (Renee, WI)
28:58 - Is the IRS Going to Penalize Me For Not Paying Roth Conversion Tax in January? (Dan, Milford, MI)
30:38 - Roth 5-Year Clock: Compounding Interest on Rolled Over Retirement Accounts (Aaron, OH)
32:19 - How Does the Affordable Care Act Tax Credit Work with Dependents? (Kirk, IA)
37:11 - The Derails

Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-452

ABCs of College Funding - free download
Money Saving Tips fro Funding College - YMYW TV
How to Save for Education; 529 Plan, Coverdell, Prepaid Tuition and More - on-demand webinar
Episode Transcript
Ask Joe & Big Al On Air for your Retirement Spitball Analysis

Transcript

Click on a timestamp to play from that location

0:00.0	Why does Becca in Florida's advisor poo-poo her strategy for funding 529 plans for education?
0:06.3	Keith commenting on Spotify wants to know about reimbursing yourself from a 529 plan for the
0:10.9	scholarship amount used for education without penalty, and Wendy, way up in New York,
0:15.7	wants to know if she should use retirement funds to pay for college and home renovations.
0:20.1	Today on Your Money, Your Wealth podcast number 452.
0:23.6	Plus, what are the pros and cons of starting Roth conversions for Renee in Wisconsin?
0:28.0	And is she on track for retirement?
0:29.8	Will the IRS penalize Dan in Michigan for not paying Roth conversion tax in January?
0:34.9	With the five-year clock, how does compounding interest work when
0:38.0	Aaron in Ohio changes custodians? And Kirk in Iowa wonders how the Affordable Care Act's
0:43.2	tax credit works with dependents. I'm producer Andy Last, and here to spitball on all of these
0:48.2	questions are the hosts of Your Money, Your Wealth, Joe Anderson, CFP, and Big Alclopine CPA.
0:54.8	Let's go to Florida. How about that? Okay.
0:58.4	Hey, Joe Big Al, Andy. Let's talk about how we get money into 529.
1:04.3	First, I have good income. I max out contributions to my TSP. I do backdoor Roth contributions
1:08.9	each year. Don't have any debt, blah, blah, blah.
1:11.5	I'm totally comfortable with my financial situation.
1:16.0	Okay, good.
1:17.0	I'm done.
1:18.3	All right.
1:19.5	We're done.
1:20.0	Next question.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Your Money, Your Wealth, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Your Money, Your Wealth and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.