529 plan

I know I am already late to the game of signing baby up for One do these.

But anything I should be aware of going into it? Do I put it in my name or her name?

You are not really late to the game.

In Michigan, the account owner must be at least 18 years old, so normally the parent is the owner and the child is the beneficiary.  Some states allow you to make your child the owner, but I believe since 2009 529 plans are counted as a parental asset for financial aid, regardless of who owns it.  (A grandparent can own too, but that is a separate discussion and not usually worth it).

You can sign up for any state plan, but Michigan's is highly rated and the only one that will allow you a state tax deduction on contributions if you live in MI.

If you think your kid will go to school in Michigan, you can do the prepaid tuition plan (a type 529 plan).  I may have gone this route, but it is unlikely my cherub will go to school in Michigan so it was not a factor.

You're not late, way ahead of a most people.

Start now, you're not late.

Dendro only thinks she's behind the curve because she's used to hanging out on a board chock full of ballers that have their children's 529s stuffed full of cash before the cord falls off.

As MSU Addict said, do the MI-529 plan and you can deduct your contributions from your State income tax return.

Ok thanks for the info guys. I won’t do the prepaid tuition One just in case. I like it, but I don’t want it to dictate where she has to go.

I don’t think I will be able to deduct it next year. If my understanding of taxes is correct, the standard deduction will be 24k. And we don’t itemize more than that.

I guess I feel late to this, because I thought I would have had it done by now. I was planning on it before she was born.

The hardest part is to get in the habit. Just make it another monthly payment that is automatically deducted.
Also, even if you don't get the federal deduction, you get a little from the state.
A little bump in your return. , financially of course

Dendrobates wrote:Ok thanks for the info guys. I won’t do the prepaid tuition One just in case. I like it, but I don’t want it to dictate where she has to go.

I don’t think I will be able to deduct it next year. If my understanding of taxes is correct, the standard deduction will be 24k. And we don’t itemize more than that.

The deduction is on your State return, not Federal.