ESA vs 529 (how to keep money there)

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RJ2010
Posts: 34
Joined: Tue Dec 15, 2020 9:32 pm

ESA vs 529 (how to keep money there)

Post by RJ2010 »

I have both ESA and 529 for my kid. If he attends state school, there is a chance of left-over money. I want to keep the money invested.
Is there an age limit on when I have to empty out the account? Or can I keep it there until he had kids and we use it for his kids?
Is there an advantage to keep ESA vs 529?

Please advise any other options.
DIFAR31
Posts: 478
Joined: Mon Jan 01, 2018 5:51 pm

Re: ESA vs 529 (how to keep money there)

Post by DIFAR31 »

RJ2010 wrote: Wed Jan 13, 2021 11:27 am I have both ESA and 529 for my kid. If he attends state school, there is a chance of left-over money. I want to keep the money invested.
Is there an age limit on when I have to empty out the account? Or can I keep it there until he had kids and we use it for his kids?
Is there an advantage to keep ESA vs 529?

Please advise any other options.
No beneficiary age limit on keeping 529 funds invested. Generally, ESA funds must be used before the beneficiary turns 30 to avoid taxes, fees and penalties on withdrawals.
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