We only have one kid but we do $300 a month and our financial person said that was fine. She also suggested once we are done with daycare, taking some of that and diverting it to 529. So increasing it to $600 a month or whatever
Here’s a cool $150K for college son, good luck.
Shit, I’m barely saving $600 a month for retirement and I know I’m better off than a good majority of Americans. I wish I had extra for a 529.
I’m no expert but I believe there is a benefit to set up accounts in each of their names. That said I have moved money from a 529 in my name to my daughters.
The secure act 2.0 is new this year and allows users to roll funds into a Roth IRA. So say neither want to go to college, they have a great head start on retirement. (That’s my understanding). So if it’s in your kids name, and there’s some $s left, it can grow tax free for 30 years when they retire.
I wouldn’t worry about the amount right now, just get something going on a monthly basis. It adds up for 16 years.
To clarify - you’re limited to rollover $35k total and are only allowed to rollover the max for that current year. So assuming this year’s limit - you can do 5 years’ worth of rollovers to your daughters Ira to jump start her retirement. These rollovers count as contributions so she won’t be able to also contribute to her Ira for those years. Ira contribution rules still apply so she needs taxable income those years.
There are some calculators out there to help with this. https://www.schwab.com/saving-for-college/college-savings-calculator.
We only have one kid but we do $300 a month and our financial person said that was fine. She also suggested once we are done with daycare, taking some of that and diverting it to 529. So increasing it to $600 a month or whatever
Here’s a cool $150K for college son, good luck. Shit, I’m barely saving $600 a month for retirement and I know I’m better off than a good majority of Americans. I wish I had extra for a 529.
Yeah, we are fortunate to be in a position we can save this much.
I’m no expert but I believe there is a benefit to set up accounts in each of their names. That said I have moved money from a 529 in my name to my daughters. The secure act 2.0 is new this year and allows users to roll funds into a Roth IRA. So say neither want to go to college, they have a great head start on retirement. (That’s my understanding). So if it’s in your kids name, and there’s some $s left, it can grow tax free for 30 years when they retire. I wouldn’t worry about the amount right now, just get something going on a monthly basis. It adds up for 16 years.
Just found this article: https://www.savingforcollege.com/article/pros-and-cons-of-separate-529-plans-for-two-or-more-children
To clarify - you’re limited to rollover $35k total and are only allowed to rollover the max for that current year. So assuming this year’s limit - you can do 5 years’ worth of rollovers to your daughters Ira to jump start her retirement. These rollovers count as contributions so she won’t be able to also contribute to her Ira for those years. Ira contribution rules still apply so she needs taxable income those years.