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 ww**www**www**www************www**www**www*******www**www**www**www*** > The information in this email