Comments on: Comparing A 529 Plan And An Education Savings Account (ESA). http://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/ A place to discuss money...for the rest of us. Mon, 23 Nov 2009 21:22:28 -0500 hourly 1 By: * Dave Ramsey’s College Savings Advice http://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/comment-page-1/#comment-33496 * Dave Ramsey’s College Savings Advice Mon, 13 Jul 2009 03:53:11 +0000 http://www.mytwodollars.com/?p=1825#comment-33496 [...] infallible — we all make mistakes right?More on 529 Plans versus Education Savings Account:Comparing A 529 Plan And An Education Savings Account (ESA) @ My Two DollarsChoosing a 529 Plan @ Lazy Man and Money Saving Money For Your Child’s [...] [...] infallible — we all make mistakes right?More on 529 Plans versus Education Savings Account:Comparing A 529 Plan And An Education Savings Account (ESA) @ My Two DollarsChoosing a 529 Plan @ Lazy Man and Money Saving Money For Your Child’s [...]

]]> By: Jorge http://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/comment-page-1/#comment-32747 Jorge Tue, 05 May 2009 17:45:25 +0000 http://www.mytwodollars.com/?p=1825#comment-32747 One thing I REALLY like about ESA is that it can be self-directed! In other words, you have more freedom to select an investment vehicle such as Real Estate investing or make loans to 3rd parties. This would allow an ESA to grow tax-free significantly by investing in a vehicle one feels more comfortable with or knows more about. Happy investing :) One thing I REALLY like about ESA is that it can be self-directed! In other words, you have more freedom to select an investment vehicle such as Real Estate investing or make loans to 3rd parties. This would allow an ESA to grow tax-free significantly by investing in a vehicle one feels more comfortable with or knows more about. Happy investing :)

]]> By: January 5, 2009 Link Payday | Uncommon Cents http://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/comment-page-1/#comment-30894 January 5, 2009 Link Payday | Uncommon Cents Mon, 05 Jan 2009 22:20:15 +0000 http://www.mytwodollars.com/?p=1825#comment-30894 [...] job of comparing two really important savings vehicles for ducational purposes when he writes on Comparing a 529 Plan and an Education Savings Account (ESA). This can be a tough choice for many, so David does a nice job of looking at the pros and cons of [...] [...] job of comparing two really important savings vehicles for ducational purposes when he writes on Comparing a 529 Plan and an Education Savings Account (ESA). This can be a tough choice for many, so David does a nice job of looking at the pros and cons of [...]

]]> By: Joe http://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/comment-page-1/#comment-30830 Joe Sun, 28 Dec 2008 19:45:57 +0000 http://www.mytwodollars.com/?p=1825#comment-30830 I agree with your assessment that I will be able to contribute more than $2k per year, so the 529 makes more sense. However, I've decided to max out the ESA while contributing an additional $1-2k into a 529 annually. I live in a state where there is no income tax, and therefore no state tax advantage to a 529 (one of the main benefits you omitted). However, I might be in a position where my child needs to go to a private school in the future (if I move) or needs educational equipment (such as a computer) prior to entering college. The ESA allows my contributions to be used for these things, whereas my child will need to wait until she is a college student to access the funds in her 529. If I lived in a state that provided large tax advantages for participating in that state's 529, I might be persuaded to end ESA contributions. Also, for people who are more risk-averse and think their child will go to college in a state school, pre-paid tuition programs are pretty good. I agree with your assessment that I will be able to contribute more than $2k per year, so the 529 makes more sense.

However, I’ve decided to max out the ESA while contributing an additional $1-2k into a 529 annually.

I live in a state where there is no income tax, and therefore no state tax advantage to a 529 (one of the main benefits you omitted). However, I might be in a position where my child needs to go to a private school in the future (if I move) or needs educational equipment (such as a computer) prior to entering college. The ESA allows my contributions to be used for these things, whereas my child will need to wait until she is a college student to access the funds in her 529.

If I lived in a state that provided large tax advantages for participating in that state’s 529, I might be persuaded to end ESA contributions.

Also, for people who are more risk-averse and think their child will go to college in a state school, pre-paid tuition programs are pretty good.

]]> By: Comparing A 529 Plan And An Education Savings Account (ESA). | My … | refunddebt.com http://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/comment-page-1/#comment-30784 Comparing A 529 Plan And An Education Savings Account (ESA). | My … | refunddebt.com Tue, 23 Dec 2008 05:15:58 +0000 http://www.mytwodollars.com/?p=1825#comment-30784 [...] Comparing A 529 Plan And An Education Savings Account (ESA). | My … [...] [...] Comparing A 529 Plan And An Education Savings Account (ESA). | My … [...]

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