Disadvantages of a 529 Plan

[@ACapReCap]

ACap will not respond to comments seeking tax or financial advice. Please consult a CPA or CFP who is familiar with your individual circumstances.

[@pwdii4107]

Can you open a 529 plan for yourself with the intention of pursuing post-grad higher education?

[@aallearn4927]

Basic ques...as i m at early stage....should i go for brokerage or state to open 529 account?

[@TheK9Shepherd]

Remember however. You can always take out your contributions tax free, no penalties. So if your kid doesn't go to school, you can at least get back your contributions.

[@ACapReCap]

Great point. Thank you for clarifying.

[@JohnPaul-ol5zl]

Is the Florida Prepaid College Fund good to get?

[@arzumanian]

Hey Ara. How are you? Not asking for advice here, but interested in your thoughts on the relative merits of using Acorns instead of a 529. I saw high costs (%) on most of the 529 plans I saw.

[@ACapReCap]

Hi Ara. I'm going to post a video very soon about the differences between the Acorn Early and 529 plans accounts. There are tons of great low-cost 529 plans offered by various states.

[@JohnPaul-ol5zl]

Is the 529 Plan valid for Trade School? I live in Florida and my child will be graduating in May 2028.

[@Intentionaltia]

Yes.

[@Bravesailor95]

Can I withdraw my contributions without penalty? Note: not my earnings, just my contributions.

[@jimknarr]

Yes

[@Eric-tb2je]

Ok... we've been religiously investing in our 3 kids 529 plan monthly since they were born. They are now 9, 7, and 5... We live in California and I know we can't deduct the contributions but now I find out that my kids will be punished on the FAFSA application. What are the better options at this point and what can we do with the money already invested with Vangaurd 529 plans? Thank you...

[@ormand3000]

5% of student assets is punishment on FAFSA? Be practical and sensible.

[@Eric-tb2je]

@@ormand3000 Agreed! The differed taxes is well worth it. Thank you!

[@jimmcbride4259]

move out of California