From: Lesley Groff <Ma To: "Cuti, Anthony J" Cc: Ike Groff <MI > Subject: Re: 401K vs 529 Question... Date: Mon, 02 Nov 2015 18:54:40 +0000 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 ww**www**www*******www**www**www**www**www**www**www**www**www**www**Ir > The information in this email is confidential and may be legally privileged. It is intended solely for the addressee. Access to this email by anyone else is unauthorized. If you are not the intended recipient, any disclosure, copying, di