Question
I currently use the Fidelity plan so that my in-laws can use a credit card that deposits to my sons accounts. The plan was 2% of all purchases on an amex card. Now they have reduced it to 1.5% and added a $20.00 annual fee for each account, plus it is an amex. Would like to find a better plan with better % and no annual fee. VI or MC would be nice as well to increase usage.
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why wouldn't you just make tax-deductable deposits?
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why don't you just give gifts to your children....up to $22000 per child per yr from both parents....kids don't incur the tax and it comes out of your estate...
that is what I do....much easier to manage....
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why don't you just give gifts to your children....up to $22000 per child per yr from both parents....kids don't incur the tax and it comes out of your estate...
It is up to $24K now ($12K per parent)
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I currently use the Fidelity plan so that my in-laws can use a credit card that deposits to my sons accounts. The plan was 2% of all purchases on an amex card. Now they have reduced it to 1.5% and added a $20.00 annual fee for each account, plus it is an amex. Would like to find a better plan with better % and no annual fee. VI or MC would be nice as well to increase usage.
The information I received in the mail said the old 2% cards would continue to earn 2% but new cards would be 1.5%. The new Amex card will also be 1.5%. I saw nothing about a $20 fee.
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It is up to $24K now ($12K per parent)
even better!!!!!
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i didnt end up needing to use mine, so i did have to pay some taxes.
i dont think my father ended up having to pay any for it though.
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i didnt end up needing to use mine, so i did have to pay some taxes.
i dont think my father ended up having to pay any for it though.
r u talking about your 529 or your kids?
if it is your kids, there is no need to cash it out....roll it over to your grandkids...
always better to have more than less !!!!
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MY 529 :p
i personally wouldnt do a 529 that far in advance :D
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Is this 22k pretax money?
why don't you just give gifts to your children....up to $22000 per child per yr from both parents....kids don't incur the tax and it comes out of your estate...
that is what I do....much easier to manage....
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what? there is NO tax...
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right on a 529, it is tax deductible as a gift from the parents, so they take out of your estatae....first yr I am doing this, so I will see how my acct uses this money
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Ummm,
Is this a case of being concerned with the trees and not the forrest?
As long as you are shopping 529 Plans how about choosing only investment options, and underlying expense ratios and management fees@:-)
I'm not talking about the annual acct fee , IF ANY,
but the fees and loads on underlying account holdings.
IMHO, they are still CHARGING you for points.
Its not even a free perk at 1.5% instead of 2%
If you want to buy points that badly, you can fully pay or overpay your taxes at 2.49 (or better with a promotion).
I'd suggest resolving to fund with a check even if you choose one that allows CC, so that it is not a subconcious factor
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Well, if you look at the OP's message, it says he wants to set up this scheme to take advantage of his in-law's charges, not his own. IE, the question doesn't ask for help on a primary plan, it merely asks if there are cards that do better than 2% for his existing plan at Fidelity.
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I have yet to find a credit card plan that I would use over DL AX. I have also yet to find a 529 that I personally feel is a better way of doing things than my own investment accounts with UBS. So my sole purpose in even having a 529 is for the purpose of having the in-laws who would not otherwise fund an investment account but are willing to use a credit card that funds the account through purchases.
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Ah drbond thanks for the clarification.
It surprised to that it would be a primary criteria for you, as you seem too sophisticated.
But, now a understand a gift for your kids is a gracious gift and you need do it Granny's way.
It surprises me that Fidelity would charge a vig.
(It's hard enough to attract assets to manage)
I do know that Univesities as non profits are allowed and do charge 'extra' for large tutition payments.
Are for profits companies allowed in the US to charge Extra??
(most get around this by offering a cash discount, rather than calling it a credit card surcharge.)
But cmon, Fidelity does not give a cash discount , they charge a credit card surcharge.
This is an outdated, I guess seldom enforced rpovision but it is still in the merchant account agreement.
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Try the Citi Upromise Card you can also fund it with your grocery club cards