My 5 and 3 year old go (will go) to a private k-12 school that costs over $10k per child. I have a good emergency fund I'm maxing out my 401k, Roth IRA, and HSA and putting what I think will cover college into their 529. I'm wondering if I should put my left over money in a taxable account or overfund their 529 to pay for middle school and highschool. I'm thinking that if I overfund the 529s then near the end of their k-12 (say 2027 to 2035) I can pull $10k per kid per year per the k-12 allowance. This should give me many years of tax free gains on that money which would have otherwise incurred capital gains if I put in a taxable account today. The money that would have gone to pay their for middle/high school post 2027 can go into a taxable account at that time so I would delay my capital gain taxable growth to start in 2027 instead of now. The main risk I can think of would be if congress removed the allowance for paying k-12 from 529 which seems unlikely to me. Their 529 is not as flexible as a taxable account but I would likely go for a similarly balanced index fund/ETF on a taxable account anyway. Thoughts?
Submitted March 11, 2021 at 05:32PM by UnDosTresPescao https://ift.tt/30Ci6Od
