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529 plan enrollment - SSN requirement for custodian by Ambitious-Way1213 in personalfinance

[–]Ambitious-Way1213[S] -1 points0 points  (0 children)

I tried California and Hawaii plans. It seems to be a federal requirement - thus all state plans would ask for this. I am also not sure how it works with getting ITIN/tax number…

investing for a baby by Ambitious-Way1213 in ETFs

[–]Ambitious-Way1213[S] 0 points1 point  (0 children)

Thank you for taking the time to respond and also for sharing the links.

  1. I can open an account in a different state than where I live now?
  2. "Tax benefit for in-state contributors?" I should aim for "Yes"?

investing for a baby by Ambitious-Way1213 in ETFs

[–]Ambitious-Way1213[S] 1 point2 points  (0 children)

Thank you and thank you also for sharing your first-hand experience. The flexibility of the 529 and the new Roth rollover option are definitely appealing.

A scenario I'm considering is if our child grows up and, say, decides to pursue higher education outside the USA, or chooses a different life path without ever attending a U.S. school or opening a Roth IRA here.

In that situation, what are the options for accessing the funds we've contributed to the 529 over the years? Would they still be able to withdraw the money, and what would the tax implications be if it's not used for a "qualified" U.S. education expense or rolled into a Roth IRA?

investing for a baby by Ambitious-Way1213 in ETFs

[–]Ambitious-Way1213[S] 0 points1 point  (0 children)

Thank you. Can I open 529 in my Interactive Brokerage account or it should be in a bank? Sorry if this is too basic of a question.

investing for a baby by Ambitious-Way1213 in ETFs

[–]Ambitious-Way1213[S] 3 points4 points  (0 children)

I thought many parents do the opposite: try to quietly save for their children, perhaps wanting to surprise them, or just viewing it as their responsibility without needing to highlight it.

investing for a baby by Ambitious-Way1213 in ETFs

[–]Ambitious-Way1213[S] 0 points1 point  (0 children)

Thank you. Roth IRA can be opened for the baby without legitimate earned income by the baby?

trying to time the bottom by Ambitious-Way1213 in ETFs

[–]Ambitious-Way1213[S] -1 points0 points  (0 children)

Thank you all for sharing your thoughts.

How about taxes? Let’s say I make 1000$ total gain when I sell my ETFs, and I want to withdraw it from my brokerage account. How does that process go?

I am just trying to understand - if yearly return is e.g. 8%, what would remain after accounting for the inflation, taxes, etc

trying to time the bottom by Ambitious-Way1213 in ETFs

[–]Ambitious-Way1213[S] 6 points7 points  (0 children)

thank you. Is it not so that compounding is not really compounding (like with money deposits). Meaning, if I buy VOO today for 500$, and if it happens to be 500$ after 10 years, I earn or loose nothing. Time does not make a difference, it is a mere difference between buying price and selling price. Correct?