I have a 529 college plan for my daughter. There are
Federal restrictions on trading 520 plans, namely, only one switch
a year is allowed.
If there are others out there in the same boat as me, I'd
appreciate learning about how you manage your 529s. In other
words, how do you trade them given the federal restrictions?
No trading in the 529 really. You could look at other
managers and Barclays use to have an ishares 529 plan which has
funds built off ETFs but I imagine the limited trading still
applies.
If you are interested in not being stuck buy and hold but want
tax deferral and your not maxing out the 401K you could go that
route, trade it, and then take a loan come college time for the
funds needed etc.
I am not a registered investment adviser so Caveat Emptor.
I know for 2009, they lifted the restrictions to 2 (whoopee)
trades a year. I'm pretty sure for 2010 it is one trade. Depending
on your 529 plan, the manager should be making changes according to
the years to enrollment or the age of the participant. Or,
depending on the age of your daughter, consider the s/t bond fund
option. My kids are in high school, and I moved 50% of the balance
to short term bond funds earlier in the year.
Wow, only one change a year! well maybe the long term SPX
system from 1961 or one of the long term MA systems like the 50/200
EMA etc.
however sometimes those can do a whipsaw and two trades in a
year, really with only one trade a year, your hands are tied. Are
you sure about that? Maybe they mean one switch a year into a
certain fund, but if you moved say from Long the market to cash
then back long the market but to a different long fund, maybe it
wouldn't count?? You should check on the details of that
more
No its one change per year Matt .. Example - I want to exit and
go to cash then buy back in say three-four months down the
road. You cannot. You have to wait one year.
Yes but you get the TAX Free end when withdrawing and if you
have more than one child if older child doesn't use all of it then
it can be used for younger one etc.
Worst case Obama will pay for college for me kids .. O wait I
make too much money now because of BPT .. Dam you Matt & Steve
why are you making me Rich
my point was, when I used to work a day job as a Chemist, the
company restricted our 401K moves to once a month, but that was per
fund; we had 8 different funds we could move our money into, so the
way I would get around this was moving it to a different fund
instead of back to the same mutual fund.
otherwise I don't know anything about a 529 plan.
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529 Plans
Posted by algyros on 7th of Jul 2010 at 11:52 am
I have a 529 college plan for my daughter. There are Federal restrictions on trading 520 plans, namely, only one switch a year is allowed.
If there are others out there in the same boat as me, I'd appreciate learning about how you manage your 529s. In other words, how do you trade them given the federal restrictions?
No trading in the 529
Posted by tom on 7th of Jul 2010 at 01:22 pm
No trading in the 529 really. You could look at other managers and Barclays use to have an ishares 529 plan which has funds built off ETFs but I imagine the limited trading still applies.
If you are interested in not being stuck buy and hold but want tax deferral and your not maxing out the 401K you could go that route, trade it, and then take a loan come college time for the funds needed etc.
I am not a registered investment adviser so Caveat Emptor.
529 Plans
Posted by jcswil on 7th of Jul 2010 at 12:31 pm
I know for 2009, they lifted the restrictions to 2 (whoopee) trades a year. I'm pretty sure for 2010 it is one trade. Depending on your 529 plan, the manager should be making changes according to the years to enrollment or the age of the participant. Or, depending on the age of your daughter, consider the s/t bond fund option. My kids are in high school, and I moved 50% of the balance to short term bond funds earlier in the year.
Wow, only one change a
Posted by matt on 7th of Jul 2010 at 12:17 pm
Wow, only one change a year! well maybe the long term SPX system from 1961 or one of the long term MA systems like the 50/200 EMA etc.
however sometimes those can do a whipsaw and two trades in a year, really with only one trade a year, your hands are tied. Are you sure about that? Maybe they mean one switch a year into a certain fund, but if you moved say from Long the market to cash then back long the market but to a different long fund, maybe it wouldn't count?? You should check on the details of that more
No its one change per
Posted by cspirit on 7th of Jul 2010 at 12:35 pm
No its one change per year Matt .. Example - I want to exit and go to cash then buy back in say three-four months down the road. You cannot. You have to wait one year.
Thats too damn restrictive
Posted by matt on 7th of Jul 2010 at 01:04 pm
Thats too damn restrictive
Yes but you get the
Posted by cspirit on 7th of Jul 2010 at 01:18 pm
Yes but you get the TAX Free end when withdrawing and if you have more than one child if older child doesn't use all of it then it can be used for younger one etc.
Worst case Obama will pay for college for me kids .. O wait I make too much money now because of BPT .. Dam you Matt & Steve why are you making me Rich
my point was, when I
Posted by matt on 7th of Jul 2010 at 12:28 pm
my point was, when I used to work a day job as a Chemist, the company restricted our 401K moves to once a month, but that was per fund; we had 8 different funds we could move our money into, so the way I would get around this was moving it to a different fund instead of back to the same mutual fund.
otherwise I don't know anything about a 529 plan.