TLH for a 529

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powersmo
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Joined: Mon Jan 07, 2008 4:34 pm

TLH for a 529

Post by powersmo » Fri Oct 24, 2008 5:13 pm

Can you TLH with a 529 plan? Our sons VEST 529 plan is down from a value of 46k to 21k. Not sure whether or not we could sell and reinvest the 21k in a different plan to take the tax loss off on federal taxes this year like with a standard mutual fund. Appreciate the help.

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PiperWarrior
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Location: right on course

Post by PiperWarrior » Fri Oct 24, 2008 6:10 pm

Yes, under certain conditions. Look for "2%" in Cashing In on a Losing 529 Plan.

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tom0153
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Location: Little Neck, NY

Post by tom0153 » Fri Oct 24, 2008 7:58 pm

Using the link in the Fox News article you go to this site:

http://www.savingforcollege.com/article ... php?id=344

There is also a concern about gift taxes and even the wash sale rules that this well known website presents.

If you have used the gift tax limit times five years to deposit into the 529, I'd review this very carefully.

He repeats what I have seen here, and that is if you plan to use the funds in the latter part of the college career, you may have more time to look at a recovery in value ....
Best, Tom

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