The only thing I do know about it was that my accountant told me NOT to open one. I guess when it comes time for your child to go to college you have to use the WHOLE thing before you can go for any financial aid or grants. The bottom line I got from that was that it's a good idea if you are filthy rich and can afford to pay the whole amount for tuition w/out any aid or grants. Again that is in short but definitely talk to a financial planner or accountant before doing anything so you have all the info and rules.
Basically, you do not have to pay CT state taxes on income used to save for your kids college if you have it in their 529 plan. I'm not sure about grants/financial aid. My parents were not filthy rich by any means but I never qualified for anything like that. It really doesn't take much to be considered "rich" in the eyes of college admissions.
I've never heard anything about needing to use the whole amount before applying for financial aid. I do know that if a parent is listed the account owner then you need to declare the value of the 529 plan on your taxes, which in turn could affect what financial aid your child is eligible for. I was thinking about having my mother open one for my daughter, since it wouldn't count against us for any aid help.
My financial planner recommended that we contribute to one. You can get up to $10K in CT state tax deductions for the amount you contribute (for a married couple).
So you not only save on the appreciation, but also on the tax savings.
Re: come someone explain the Connecticut 529 savings plan...
https://www.aboutchet.com/faq/index.html
Basically, you do not have to pay CT state taxes on income used to save for your kids college if you have it in their 529 plan. I'm not sure about grants/financial aid. My parents were not filthy rich by any means but I never qualified for anything like that. It really doesn't take much to be considered "rich" in the eyes of college admissions.
My financial planner recommended that we contribute to one. You can get up to $10K in CT state tax deductions for the amount you contribute (for a married couple).
So you not only save on the appreciation, but also on the tax savings.