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itsjustpk Member since 2003

From: WI

Saving for: granddaughter, age 19


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The extra 10% for dining and participating grocery items is usually posted a few weeks after...more

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Paying for college

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ezrashonor
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ezrashonor
Posts: 1
Registered: 09-01-2009
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prepaid plan and a 529?

09-01-2009 03:11 PM

We have a fully funded prepaid plan and are currently saving for additional costs with bank CDs and high yield savings accounts.  We are considering opening a 529 with some of this cash.  Q: Can you have BOTH a prepaid plan AND a 529 for the same child? in the same state? and take tax deductions for contributions?

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stormyzim
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stormyzim
Posts: 1
Registered: 10-06-2009
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Re: prepaid plan and a 529?

10-06-2009 08:25 PM

I live in PA and have both. I have a prepaid plan and a 529 for the same child. PA has a very high limit of contribution $386,000 per child I think.  I have other kids as well so I could pass some to them if my poldest doesn't need it all. Be careful, you can't use a 529 to hide money from taxes. If you don't use it for college expenses (includes books, etc.) and don't have another child to pass it down to, you will eventually pay taxes on the money.

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