All,
I am comparing two investments. Both are taxable when invested and all earnings are tax-free when withdrawn (it's a Roth IRA vs. a 529 plan).
The 529 plan offers a 20% state tax credit which the Roth IRA does not. However, the investment options are constrained, and the funds I would be forced to invest in have annual management fees of 1 - 1.5% per year.
My Roth IRA investments have much lower fees, about .5% per year on average.
Given an investment horizon of 13 years, which wins, taking the 20% tax credit and suffering the higher fees, or forgoing the credit and paying higher fees?
-->Adam
2007-12-10
04:49:13
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1 answers
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asked by
great_and_mighty_adam_levine
4