20% Tax Credit and 1.5% fees, or no tax credit and lower fees.?

All,

I am comparing two investments. Both are taxable when invested and all earnings are tax-free when withdrawn (it's a Roth IRA vs. a 529 plan).

The 529 plan offers a 20% state tax credit which the Roth IRA does not. However, the investment options are constrained, and the funds I would be forced to invest in have annual management fees of 1 - 1.5% per year.

My Roth IRA investments have much lower fees, about .5% per year on average.

Given an investment horizon of 13 years, which wins, taking the 20% tax credit and suffering the higher fees, or forgoing the credit and paying higher fees?

-->Adam

The money is not taxable when withdrawn in either case.

Your tax credit 20%, doesn't tell me much right at the present. The savings or comparisons would depend on your income at the time of withdraws.

You may get a more informed opinion from the investment counselers with whom you are consulting and giving some idea or estimate based on future income, 13 years out..

Tags

　　Global Investment 　　Fund Portfolio 　　Fund Performance 　　Fund Manager 　　Fund Management 　　Forex 　　Foreign Investment 　　Financial Investment 　　Fidelity Investment

Related information

Is this a scam or real would like to know?

Scam. Google the phone # If you want to waste some money, call it.

...

This is a question for Canadians only - is 50 dollars annually a good deal for an online mutual funds account?

crazy, i won't pay 50 dollars just to hold a mutual fund account. Bank like RBC, their online banking can trade mutual fund like the 50$ account does. Purchase mutual fund thru a branch usu...

Do they think we are fools?

Hi Wozzy Bear. Don't worry I get em too sometime. Just forget about em. They send em out by the thousands hoping some *naive optimistic let me try it out* type of person will give out so...

Does anyone know of any free online lean sigma six courses?

I did a googlesearch on six sigma and found a number of on-line outlets, but none of them are free. It makes sense, because you get what you pay for.

...

Has anyone done training in social work?

Well I have my BSW with an LSW and in the area I live in I am having trouble fining work in my city but we are like that here with most professions anymore. Social Work values often conflict wi...

Need help with a business idea!?

Hey fellow Vancouver person (well vancouver island but still) um, ya sorry I dont know about the space and business. What do you like to do and what are the needs of the town? Find out both, put em...

What to do if your renting and the home is being foreclosed on?

take them to court plain and simple in the mean time get ready to move once again

...

Do you get this sort of letter, and all caps is not rude idiot?

419.fcd@usss.treas.gov. This is where to report such scams. Obviously the rest of the people answering, except for 1 person only wished to insult.

...