I am 32 and have just recently begun my journey into investing and I'm currently investing the max to DW and my own Roth Ira every year(100% VTSAX). I'm a little late to the game and a little uneducated on these topics so I figured I'd ask if it's too late for me to start contributing to my childrens' 529 plans.
My oldest is 12 and youngest is 9. I'm also in Texas in case that matters. We are business owners and don't make a whole lot but the way I understand our first step is 6 months expenses which is done, then contribute the max to both our roths every year, which i've done for 2 years, then taxable correct? Also, I put the 6 months emergency expense money into a taxable Vanguard Federal Money Market Fund, did I do that right? The way I understand the VMFXX is when the earnings are withdrawn they are taxed at the long term capital gains rate, so if we make less than 89,250 that would be 0% correct?
My overall question is whether it's too late to open a 529 for my children? I heard about recent changes in the law that allows unused portion 35k i believe, to be put into a roth ira if unused. So does it make sense to fund 529s this late?
Sorry for all the questions up front, probably should have separated them out but TIA for any answers/advice.
My oldest is 12 and youngest is 9. I'm also in Texas in case that matters. We are business owners and don't make a whole lot but the way I understand our first step is 6 months expenses which is done, then contribute the max to both our roths every year, which i've done for 2 years, then taxable correct? Also, I put the 6 months emergency expense money into a taxable Vanguard Federal Money Market Fund, did I do that right? The way I understand the VMFXX is when the earnings are withdrawn they are taxed at the long term capital gains rate, so if we make less than 89,250 that would be 0% correct?
My overall question is whether it's too late to open a 529 for my children? I heard about recent changes in the law that allows unused portion 35k i believe, to be put into a roth ira if unused. So does it make sense to fund 529s this late?
Sorry for all the questions up front, probably should have separated them out but TIA for any answers/advice.
Statistics: Posted by iamgroot15 — Wed Feb 28, 2024 7:28 pm — Replies 11 — Views 1199
