From: Ike Groff
To:lesleyGron,"Cuti,Anthona
Subject: RE: 401K vs 529 Question...
Date: Mon, 02 Nov 2015 18:56:29 +0000
I do not think we are eligible for a Roth based on income factors
Original Message
From: Lesley Groff [mailto:
Sent: Monday, November 02, 2015 1:55 PM
To: Cuti, Anthony J
Cc: Ike Groff
Subject: Re: 401K vs 529 Question...
great! thank you so much...I am not sure about traditional or Roth 401K...I am not sure the
difference...
On Nov 2, 2015, at 1:38 PM, Cuti, Anthony J wrote:
> Lesley:
> Would the 401k be a traditional 401k or a Roth 401k?
•
•
> Typically, 529 plans are not tax deductible for federal purposes. However, the earnings
will grow tax-deferred until the funds are distributed in the future. The funds in the 529
would need to be used for qualifying college expenses or could be subject to a 10% penalty
upon withdrawal.
> Your resident state of CT, will allow up to a $10,000 annual deduction for joint filers.
You can contribute more but would need to consider potential gift tax issues if giving more
than $14,000 per year per recipient.
> If you contributed to a traditional 401k, you can put up to $18,000 for 2016, which you
reduce your current year taxable income.
> Thanks,
> Anthony
•
> Anthony J. Cuti II, CPA
> Direct Tel (973) 577-1616
> Email:
• Original Message
> From: Lesley Groff (mailto:
> Sent: Monday, November 02, 2015 12:50 PM
> To: Cuti, Anthony J
> Cc: Ike Groff
> Subject: 401K vs 529 Question...
•
> Hi Anthony...hoping I can ask you a quick question ....my employer and I are discussing
either starting me up with a 401K (where he would match my contribution 100%) vs starting a
529 for my son...my boss thinks it may be more beneficial, tax wise on our part, if he were
to start a 529, but he is not sure...might you know tax wise what is best for us?
> Thanks, Lesley (and Ike) Groff
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