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Topic: Should I keep contributing to my 529 plans?  (Read 462 times)

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Should I keep contributing to my 529 plans?
« on: August 04, 2009, 08:46:14 PM »
Hello. I am new to this board. My family will be relocating to the UK for a permanent job. We currently have 529 plans for our kids which we contribute to on a monthly basis. Does it make sense to continue investing in them? Or shall we stop our monthly contributions. Thanks so much.


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Re: Should I keep contributing to my 529 plans?
« Reply #1 on: August 04, 2009, 09:31:56 PM »
From a UK perspective these may be taxed as UK resident trusts taxable at UK trust rates.

You should seek specialist advice from a UK trust lawyer as to how these might be taxed in the UK if the settlors (typically the parents) become UK resident.


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Re: Should I keep contributing to my 529 plans?
« Reply #2 on: August 04, 2009, 10:56:03 PM »
Thanks so much for your reply. I would be curious to know if anyone has faced this problem themselves, and if so, what they decided.


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Re: Should I keep contributing to my 529 plans?
« Reply #3 on: August 05, 2009, 07:42:59 AM »
We have thought about this as well.  Our daughter is only 3 so her 529 is not huge.  We are moving in August and have not really made a decision but obviously our payroll deduction will stop from our current employer.   When we have briefly discussed this, the question for us is where will she choose to continue her education.  We will most likely choose to become UK citizens and then if she goes to school in the UK the costs are significantly less than the US.  So do you need as much money in the 529?  I have not looked into the tax consequences.
Moved from Chicago to Sheffield Aug. 2009


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