<p>Can I request distribution now from our 529 for a payment that's not due until December(for next spring). I'm worried the market is going south and I failed to take money out for tuition I paid in 2012. I think it's too late to take distribution for 2012 tuition paid, but seems like I should be able to take it out and pay for spring semester late this year. Is that correct?</p>
<p>Thanks</p>
<p>Yes, you can withdraw now for a payment that’s due in this calendar year.</p>
<p>I had the same concern and so took 529 withdrawals last week.</p>
<p>You should be able to do move your 529 funds from an equity fund/option to a short term cash option/fund, so that you don’t have to be concerned about the market.</p>
<p>Classic financial planning theory would say you would want to do that with all your 529 assets, as the stock market is too volatile for a short time period when you will be needing the funds in the near future.</p>
<p>Same thing for retirement - you want to start cutting back on your equity exposure before you retire. Too many stories about people getting ready to retire or in early retirement in 2008/ 2009 that had their retirement plans messed up by the decline in the stock market.</p>
<p>You can, but there may be limits to the number of times per year you can move money. My state 529 allows me to move money just once a year.</p>
<p>You can, but there may be limits to the number of times per year you can move money. My state 529 allows me to move money just once a year.</p>
<p>I believe that’s an IRS and not a state limitation. In any event, the 529 plan we have has three age-based investment options (conservative, moderate and aggressive) that automatically redistributes the investment to favor less volatile assets as the child gets closer to college age. It takes a lot of the worry and guesswork out of it.</p>
<p>Trying to time the market, at least in my experience, rarely goes well.</p>
<p>Thanks. We don’t have many investing options in Maryland, and the market has been doing so well we left it in for the later years. We already lost a ton several years ago, but it finally got back up past what we put in.
I am conservative with my retirement. Someone last week just gave me a lecture on how a should have all my money in stocks, but I’m too risk averse for that.</p>
<p>We don’t have many investing options in Maryland…</p>
<p>You do know that you can invest in any state’s 529 plan, no matter what state you live in, right? You may forego a state tax break if you invest in another state’s plan, but if your state has crappy choices I would say it’s more than worthwhile to look elsewhere.</p>
<p>Yes, we’re in Alaska’s plan - pretty far away from Maine!</p>
<p>dadinator,</p>
<p>Yes, funds have been shifted due to the changing timeframe, but it’s a good time to withdrawal from the remaining stock funds which are currently high.</p>
<p>…it’s a good time to withdrawal from the remaining stock funds which are currently high.</p>
<p>And may go higher… or lower. Who knows? As I eluded to earlier, market timing is neither an art nor a science, it’s just a guess.</p>
<p>Uhhh . . . before you think about leaving Maryland: Alaska and Maryland both use the same manager (T. Rowe Price) and they are two of the three highest ranked do-it-yourself 529 plans in the country! (The other is Utah.) So, if you’re in the Maryland plan, I’d stay there unless you have a REALLY good reason to want to switch.</p>
<p>The report I read actually ranked Maryland higher than Alaska, but I’m still trying to figure that one out, since they’re supposed to be identical.</p>
<p>Alaska and Maryland both use the same manager (T. Rowe Price) and they are two of the three highest ranked do-it-yourself 529 plans in the country!</p>
<p>Ranked by who using what criteria and over what time period? As the familiar saying goes, past performance is not an indication of future results.</p>
<p>That being said, Maryland’s plan does seem to have a fairly good mix of investing options, including age-based options.</p>
<p>[url=<a href=“http://corporate.morningstar.com/us/documents/529Reports/529Landscape2013.pdf]Morningstar[/url”>http://corporate.morningstar.com/us/documents/529Reports/529Landscape2013.pdf]Morningstar[/url</a>]</p>
<p>And I’ve probably seen another half dozen reviews that reference the Morningstar study.</p>
<p>There are multiple criteria, including, but not limited to, cost and performance.</p>
<p>You might look at automatically timed 529 accounts. They reduce your risk periodically as your student ages.</p>
<p>*And I’ve probably seen another half dozen reviews that reference the Morningstar study.</p>
<p>There are multiple criteria, including, but not limited to, cost and performance.*</p>
<p>It’s not clear to me from the Morningstar report what time period is being evaluated for their ratings. Morningstar ranks the Maryland direct investment plan at 47th for expense ratio and 72nd for fees.</p>
<p>[The</a> Internet Guide to Funding College and Section 529 College Savings Plans. Savingforcollege.com](<a href=“http://www.savingforcollege.com/]The”>http://www.savingforcollege.com/) is a highly regarded web site that contains a wealth of knowledge about 529 plans in general and rates individual 529 plans specifically. The Maryland plan is ranked 8th overall for the one year period ending June 30, 2013. The three year and five year rankings are 9th and 8th, respectively. Maryland certainly appears to have a good plan compared to other states, but obviously different ranking methodologies will produce different results. As I mentioned earlier, it’s important to remember that past performance is not an indication of future results.</p>
<p>You might look at automatically timed 529 accounts. They reduce your risk periodically as your student ages.</p>
<p>That’s what an aged-based option is.</p>
<p>Kiplingers also looks at the various 529 plans:</p>
<p>[Onswipe[/url</a>]</p>
<p>And here is another, based on cost:</p>
<p>[url=<a href=“http://www.cbsnews.com/8301-505123_162-57578285/]Top”>http://www.cbsnews.com/8301-505123_162-57578285/]Top</a> five 529 college plans - CBS News](<a href=“http://t.kiplinger.com/kiplinger/#!/entry/the-best-529-collegesavings-plans,51ace468da27f5d9d0d5c5a3/1]Onswipe[/url”>http://t.kiplinger.com/kiplinger/#!/entry/the-best-529-collegesavings-plans,51ace468da27f5d9d0d5c5a3/1)</p>