529 Plan $$$ ?

Search for the “Handy Links” thread here in the USNA forum, then look for the “Midshipman Budget Stipend” Book link. That addresses his scholarship money can be applied, and provides contact info to resolve other questions, as your primary source.

No doubt others have anecdotal experience.
 
@Hopeful Plebe Mom

I suggest reaching out to the local SA parents group. They probably had all the same questions and their answers will be the most relevant coming from home state/area. My DD hasn't decided yet, but i'm already talking to parents of mids/cadets from my DDs' high schools for empty nester planning purposes. Ramping up my profile on flyertalk and cruisecritic as we speak.
 
If you don't have other children to save that money for, then the Military Family Tax Relief Act gives that 529 money all back to you penalty-free minus taxes on the gains. You can use it for whatever you want: vacations, new cars, hookers and beer... ;) It's just your money at that point.

We have one child. We kept the 529 in the account until he graduated in case anything happened along the way, and then we rolled it all over into our retirement portfolio. Another approach is to withdraw it at the same rate you would be paying for college, one quarter each year in two installments. The point is to make sure it's available in case your mid/cadet ends leaving the academy and needs it for civilian college.
 
VelveteenR said:
If you don't have other children to save that money for, then the Military Family Tax Relief Act gives that 529 money all back to you penalty-free minus taxes on the gains. You can use it for whatever you want: vacations, new cars, hookers and beer... ;) It's just your money at that point.

We have one child. We kept the 529 in the account until he graduated in case anything happened along the way, and then we rolled it all over into our retirement portfolio. Another approach is to withdraw it at the same rate you would be paying for college, one quarter each year in two installments. The point is to make sure it's available in case your mid/cadet ends leaving the academy and needs it for civilian college.
Click to expand...

Ooh, excellent! Thank you 💕
 
Capt MJ said:
Search for the “Handy Links” thread here in the USNA forum, then look for the “Midshipman Budget Stipend” Book link. That addresses his scholarship money can be applied, and provides contact info to resolve other questions, as your primary source.

No doubt others have anecdotal experience.
Click to expand...

Thank you - I did do a search for “529 plans” but those must not have been the “magic” words because every post that had the word “plan” in it came up! 😜. I’ll read the thread you referenced, thank you 👍🏼💕
 
I spent at least an hour at Parents' Weekend talking to the NABSD business liason about the 529 plan. In short, he recommended that you keep it in your saving/investment account until your DS is a senior at USNA. There will be a letter about the amount in the PTR package they get in May. We received a letter saying that up to $18,500 could be sent to them and disbursed their senior year. All mids are paid the same amount: $125 for plebes, $225 for youngsters, not sure the other two years but it goes up. Whatever is left in their account will given to them tax free. It does not earn interest if you put the money in their held pay as a plebe, and if they separate for any reason, USNA will keep it.

Hope this helps
 
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