Question for any of you folks in the field of investments!

[MarvB]

Do any of you financial planner types know if you can roll over (without penalty) a traditional IRA into a Qualified State Tuition program (529 plan)??

I can't seem to get a straight answer...damn Google!

 

[WH's OutdoorsChick]

Marv.....Do you have a financial advisor.....Who set up your retirement account???

BTW ... I have NO Idea..


If you want to read up on financial advice/ knowledge I would suggest Jean Chatzky

 

[MarvB]

WHOC- I've lived all over the "west" so my accounts have been put toghter rather piecemele over the years. I do have an "advisor" through my plan at work but the guy would be lucky to find the pocket to his pants let alone the answer to my question.

Thought I'd just float it out to the 2,000+ members of HuntTalk and see if anyones been in the same boat

Quien es senorita Chatzky? Isn't she on the tube every now and then?

 

[T Bone]

Marv,

Don't take this to the bank, but I don't think the traditional IRA can be converted to a 529 without penalty.

Only the former Education IRA, (now called something else) can be rolled over.

Someone in the CA state program should be able to give you a straight answer...it maybe in a foreign language, but straight.

Good luck,

T

 

[tnctcb]

you can set up a ESA (educational savings account) funded by a mutual fund. they are much more flexible than a 529 and could make more money over the years. there is a maximum amount you can invest per child per year but its a good place to start. ESA accounts are federally mandated and can be used at any school and can include the cost of books, tuition, housing and other nesesatties at YOUR discretion. 529 accounts cover specific expenses that you select in advance and any other profit is lost to the invetment company. 529s are also state specific. if your child goes to an out of state school states vary as to how much benifit you will get out of it. i am not trying to sway you away from a 529 only want you to look at all of your options before investing your hard earned money. as far as i know an IRA cannot be rolled into anything without paying a HUGE penalty. but if you decide to cash it out and take the hit some states allow you to make lump sum payments on a 529. personally i think if you cashed out your IRA you would lose more money than the 529 would save you. i would just start making the payments now and try to make sure you have a cushion to go with it when they get ready for college.

 

[MarvB]

Well thanks again folks and just got my answer- fella here at work called his uncle who is a financial planner and Tyson was right on the money...no pun intended- no rollover's on the Traditional variety.

T-Bone, you got a Spring turkey tied up back in the Dakota's yet?

tnctcb- We looked into the ESA (and still might to that as well) but wen't ahead and started the 529 back in December for one of the kids. What I do like about the 529 is htat the parent has total control on the money (keeps the $$ out of potential boyfriend's hands ) and can be used for a wide variety of expenses including room and board EVEN if the child still lives at home.

Any amounts not used upon the completion of the education can also be assigned (rolled over) to the next child as a beneficiary. Even the parent can use the leftover money for qualified expenses if need be.

3 kids....3 girls....3 educations...3 weddings....crap, better get 3 jobs!

 

[tnctcb]

marv that goes along with the state by state thing i guess. in florida you have to choose exactly what the money is to e spend on. in otherwords this much money wil get you tuition only, next level gets tuition and books and so on. it sounds like california may have a better plan than ours.

 

[WH's OutdoorsChick]

Quien es senorita Chatzky? Isn't she on the tube every now and then?

Yeah she is on the Tube, I also get a daily email from her and have three of her books. The reason I like her so much is because she really knows what she is talking about and she explains it in terms you can understand! I have a really awesome financial planner and he is very good at explaining things to me when I don’t understand. I am Very lucky I guess!

Anyhow good luck at your financial planning

 

[T Bone]

Marv,

Glad you got it answered by a competent individual.

A few evenings ago I got out chasing birds. I found lots of them and even called one in. Center punched him at 15 yards, and watched as he took off and set his wings and sailed into the sunset.......I looked for him for a couple of hours but no luck. Thought about getting my GSP to find him, but after talking with another hunter, discovered it to be illegal to recover game with dogs. Maybe I need to try one of those mechanical heads with a wider swath.

I'm busy trying to get a yard in before baby 4 gets here in early August, but I'll be trying again for my archery turkey monday morning.

 

[MarvB]

T- You'll pin the next one back there buddy! I started using those puckett's gobblestoppers but have yet to skewer a tom (spring bird) with one, just a couple of fall hens that I've blundered into while chasin' fur.

How far from the new digs did you have to go to get into the birds? Sounded like you had them in the backyard when you were looking at that place