2021 Billed Costs Announced

I am just curious about how the 2021 Billed Costs will be announced. Will it be by letter or email? Indoc is getting close and I understand that cost must be payed before arrival.

Any estimate when the bill will arrive?

Thanks!

If there is an Admin who can change the Thread Topic to make it clear that I am asking about "When will the Billed Costs be Announced".

We haven't received one yet. I understand it is mailed to the mid?

You will be notified by admissions - I was going to add in due time - but unfortunately, you and your Mid will learn/see quickly that USMMA does not move quickly. They will want your money fast when they tell you to pay for whatever, but they will take their good old time in reimbursing your DD/DS for expenses when they go to sea (cab rides to and from the ship/airport etc.) The other big financial issue is health insurance - depending on your family's coverage it may or may not be good enough. Your Mid will receive notification about a wavier each year and they will need your help the first time and maybe 2nd time too to fill it out our they will be billed - it is a big number for the premiums. I can't speak to the coverage since we were fortunate to have the level of coverage needed to get the wavier.

Help your DD/DS but also encourage them to do some things on their own...when they are on the ship in China or Middle East or Europe, or other, they will have to fend for themselves in some/many cases...you can't be there to help them even though you want to...so it is easier to encourage them to learn to do it state side so they can stand on their own 2 feet when they have to. They will grow up very quickly and they do shoe their new found abilities with their requests and sometimes demands for independence...in many ways they have earned it.

Truly - Best of Luck to both the new plebe candidates AND the parents enjoy the roller coaster ride...it is a wild ride at times. Welcome to the KP Family.

I received an invoice today. Billed costs were $1,020.

The costs for my plebe year was $1,107, I think. Interesting it has actually gone down.

Regarding billed costs: Does anyone have experiences they would like to share about using Coverdell ESA funds to cover financials at the Academy? I understand that this discussion may require a new thread. Please let me know and I will be glad to begin one.

We started a Coverdell account for our DS years ago not even imagining that this path was the one he would choose. IRS Publication 970 covers the distribution of funds. However, it seems like the SAs may present some special situations for Coverdell funds, and 529s as well.

We are looking forward to meeting everyone Tuesday morning (INDOC).

I have no personal experience, but I have seen previous posts discussing this topic. The law does provide a special condition for Service Academy students and the ten percent tax on payments from a Qualified Tuition Program or Coverdell Education Savings Account that are not used for educational expenses does not apply to attendees of the U.S. Military, Naval, Air Force, Coast Guard or Merchant Marine Academies, to the extent the payments do not exceed the costs of advanced education. Effective for tax years after 2002.

What another parent did after speaking with an accountant...

"...divided the amount of the "scholarship" by 8 (semesters) and disbursed that amount twice a year to use for various expenses.

For USMMA you could divide by 12 and withdraw 3 times a year. I have seen $280,000 floated around as the value of the appointment, but I suspect that a call to the academy would provide a better value. So in theory, you could withdraw up to $23,333 every 4 months and not worry about the ten percent tax issue.

sevenrider860 said:

I have no personal experience, but I have seen previous posts discussing this topic. The law does provide a special condition for Service Academy students and the ten percent tax on payments from a Qualified Tuition Program or Coverdell Education Savings Account that are not used for educational expenses does not apply to attendees of the U.S. Military, Naval, Air Force, Coast Guard or Merchant Marine Academies, to the extent the payments do not exceed the costs of advanced education. Effective for tax years after 2002.

What another parent did after speaking with an accountant...

"...divided the amount of the "scholarship" by 8 (semesters) and disbursed that amount twice a year to use for various expenses.

For USMMA you could divide by 12 and withdraw 3 times a year. I have seen $280,000 floated around as the value of the appointment, but I suspect that a call to the academy would provide a better value. So in theory, you could withdraw up to $23,333 every 4 months and not worry about the ten percent tax issue.

Click to expand...

In my day, we called it a $40,000 education delivered to us in the most unseemly matter. . .a nickel at a time. . . ingrates all of us. . .