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. Fri, 10 Feb 2012 05:21:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Alexia Hemmenhttp://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/#comment-37679 Alexia Hemmen Mon, 13 Dec 2010 12:15:14 +0000 http://www.mytwodollars.com/?p=1825#comment-37679 Hey... It looks like there's an issue with all the layout from the web page. For some purpose the text block is running into the edge. I do not know if it is just me or are other people reporting the identical thing? Just wanted to allow you to know in case you've been updating the web site. Hey… It looks like there’s an issue with all the layout from the web page. For some purpose the text block is running into the edge. I do not know if it is just me or are other people reporting the identical thing? Just wanted to allow you to know in case you’ve been updating the web site.

]]> By: * Dave Ramsey’s College Savings Advicehttp://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/#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: Jorgehttp://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/#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 Centshttp://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/#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: Joehttp://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/#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.comhttp://www.mytwodollars.com/2008/12/22/comparing-a-529-plan-and-an-education-savings-account-esa/#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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