Is a 529 worth it in this case?

MACmiracle
Tue, 08 Oct 2019 12:14:20 +0000

@cptofthehouse Thanks for those ideas. For the last two years we have been making IRA contributions on a traditional because the second school on D20’s list uses AGI to calculate finaid and doesn’t consider assets for lower income levels. She could get a 75 percent reduction in tuition that way which would be an amazing opportunity. D20 isn’t a shoo-in at her first school and is an unmotivated student so it would be hard for her to do better than what the second choice school would offer, a debt free college education.

I found an 11 month no-penalty-for-early-withdrawal CD. And also credit union with good CD rates for 2 and 3 year CDs. That combo might be a good option.