From my reading you will be expected to contribute 5.6% of parent assets, so if you had a 1 million taxable portfolio would be $56k / year. That is total contribution / year. if you have two children in college at the same time for some schools you may only pay $56k / year (or $28k for a school). This doesn’t apply to fafsa schools with the change to student aid index this year, but css schools (the expensive private ones) may still take two kids simultaneously into account and not charge double. That means you’ll be paying $56k x 6 years = $336k minimum, increased based on your portfolio at the time of college.
Seems like would be reasonable to fund a 529 to target $150k for each child at college time to take advantage of tax free growth. If your 401k and Roth was big enough so you had no need for taxable assets (and could put all that money into a house) even an expensive college could be nearly free but doesn’t sound like that is your situation. Perhaps put $50-100k for each in a 529 while you are still working.
Seems like would be reasonable to fund a 529 to target $150k for each child at college time to take advantage of tax free growth. If your 401k and Roth was big enough so you had no need for taxable assets (and could put all that money into a house) even an expensive college could be nearly free but doesn’t sound like that is your situation. Perhaps put $50-100k for each in a 529 while you are still working.
Statistics: Posted by er999 — Mon Apr 29, 2024 8:21 pm — Replies 72 — Views 7574