Oregon College Savings Plan (sale, school, colleges)

[Goin'toasquarestate]

Guys,

Has anyone been utilizing this State program as a savings tool, been working good or more welfare and no signif. benifit's. I will take time to read the website's info., but thought I'd throw it out here for real person thoughts please.

[jjpop]

After 2 apparently terrible fund managers (Strong and Oppenheimer) the State settled on well-regarded TIAA-CREF to manage the program. This happened sometime last year.

I'm pleased with the program. The returns are on par with other investments, and the State tax savings is a nice benefit.

[Goin'toasquarestate]

Originally Posted by jjpop

After 2 apparently terrible fund managers (Strong and Oppenheimer) the State settled on well-regarded TIAA-CREF to manage the program. This happened sometime last year.

I'm pleased with the program. The returns are on par with other investments, and the State tax savings is a nice benefit.

In your opinion only, of course, would it be a descent place to stash any modest windfall from the sale of my classic car, for the next two years or so; saving it for my boys' educations only a few years out? Can I even do that with this program, and realize the tax advantages..............should I just call them and learn to see how that can work for me?

Not alot of time really to get in there and have a safe place to stash the bread for the next 2 or so years.

Thanks much!

[jjpop]

I think you can contribute as much as you want, but there's a threshhold maximum amount to get a tax deduction. If you file a joint return, Oregon allows you to contribute up to $4180 a year and write that off of your OR State taxes. It's $2090 if you file single. So if you're in the 9% bracket, file joint, and you contribute $4000, you would save about $360 on your State taxes.

It's worth it to me, but my kids have a ways to go before college. You can look at the returns for the various portfolios at their website: Investment Performance : Oregon College Savings Plan

Good luck!

[jjpop]

One other thing: withdrawals from the fund for eligible college expenses are not taxed. Not at the State level or at the Federal level.

[Smiled]

TIAA-CREF has a good reputation.

[Goin'toasquarestate]

Thanks guys............i'm learning more about this for sure. So I can park any windfalls into there, and be ready for thier schooling in some way before moving forward with rest of mine.

[Goin'toasquarestate]

Originally Posted by jjpop

I think you can contribute as much as you want, but there's a threshhold maximum amount to get a tax deduction. If you file a joint return, Oregon allows you to contribute up to $4180 a year and write that off of your OR State taxes. It's $2090 if you file single. So if you're in the 9% bracket, file joint, and you contribute $4000, you would save about $360 on your State taxes.

It's worth it to me, but my kids have a ways to go before college. You can look at the returns for the various portfolios at their website: Investment Performance : Oregon College Savings Plan

Good luck!

Reading from the website, I think what you're referring to in red above is the max. deduction on your tax form, not your max contributuon....me researching more though.

[jjpop]

Originally Posted by Goin'toasquarestate

Reading from the website, I think what you're referring to in red above is the max. deduction on your tax form, not your max contributuon....me researching more though.

That's right. It's not the max contribution, but the max to contribute to get the deduction (filing jointly).

[Goin'toasquarestate]

Originally Posted by jjpop

One other thing: withdrawals from the fund for eligible college expenses are not taxed. Not at the State level or at the Federal level.

From the OCSP site:

Contributions and Any Earnings Used to Pay for Qualified Higher Education Expenses are Federal and Oregon State Income Tax-free.

"The earnings portion of any distributions used to pay for qualified higher education expenses will be free from federal and Oregon state income tax."

The way this is worded, I'm expecting the state or someone else to tax some OTHER portion of the distribution. Not that contributing's not worth it mind ya' (espec. if your in a descent earning fund)..........I'm just saying.............

Not being argumentative, but that does not say to me, w/d's are entirely free from taxes. Am I mis-understanding, jjpop? You prolly' have a better handle on it than I.

Oh I see, so married filing joint in 2010 we can contribute up to $4180 and deduct that amount on my tax form; anything over that amount I may contibute but cannot claim as deduction? Whew................

Good weekend to all...........Thanks,
Goin'