Advantages of Investing for Retirement in a 529
529s have no contribution limits, thus you can stuff as much money into one (or multiple plans) as you want. … Consider using tax inefficient assets (such as REITs) or fully taxable bonds in your 529 retirement account, as called for depending on your asset allocation.
Accordingly, is a Roth IRA better than a 529 plan?
Advantages of Roth IRAs for College
Like the 529, there is no income tax deduction when you contribute to a Roth IRA. Instead, your contributions and earnings grow tax-free. And because you’ve already paid your taxes, you can withdraw contributions at any time, for any reason, tax-free.
Also question is, is a 529 plan worth it?
Benefits of a 529 plan
529 plans typically offer you unsurpassed tax breaks. Earnings in a 529 plan grow tax-free and are not taxed when they’re withdrawn. This means that however much your money grows in a 529, you’ll never have to pay taxes on it.
What can you do with leftover 529 money?
6 ways to spend leftover 529 plan money
- Transfer the 529 plan funds to another beneficiary. …
- Save the 529 plan funds for your child’s future educational needs. …
- Use the money to make student loan payments. …
- Save the 529 plan for a grandchild. …
- Take advantage of penalty-free scholarship withdrawals.
Can I buy a computer with 529 funds?
Technology Items – You can use a 529 plan to cover technological needs such as computers, printers, laptops and even internet service. These items must be used by the plan beneficiary while enrolled in college.