I live in Indiana which has the nation's most generous 529 plan where you get a 20% tax credit for every dollar you save in a 529 with the max per year credit being $1000. I've been maxing this out every year because someday I might have to move due to unforeseen life changes and I wouldn't be able to take advantage of such a generous program. I don't have plans to move, but if I lost my job I would most likely have to move to another state. My kid is only four and I already have more than $20k saved and it is invested in a fairly aggressive portfolio of stock and bond index funds. If I were to withdraw the funds for non-qualified expenses I would have to pay the credit back and a tax penalty. I feel like at some point soon I will need to decide to stop investing in the 529 because, after some assumed compounding, I will have more than enough to fund an entire college education. How do I go about deciding when to stop investing in the 529? I won't be having any more kids.
Submitted January 24, 2020 at 09:30PM by scienceisfunner2 https://ift.tt/2sU9ZPR
