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MN | Completely depends on your situation.
Are you getting paid a wage from a large stable farm?
Are you just starting out, investing in the farm?
Here, when we had kids we were just getting going farming. We decided to invest in the farm rather than a 529, and then pay our kids real wages when they were able to work.
The farm investment has paid many times over what the 529 plan would have returned, even after paying taxes, and including the possible returns from a 529 plan.
We're fortunate our kids work hard, and have a good chunk of money saved for school, paying a tax rate that is less than ours. Talk to your accountant. If you get audited, and you're paying your kids $25 an hour when they're 5, you're going to get spanked.
Would someone today be as fortunate as we have been? I don't know. That's the risk you take as a business owner, and the decision you need to make.
In my opinion, if you're getting a wage, and your alternate investment is a 401k, the 529 is a good way to save money or college.
Good luck, and enjoy your kids. | |
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New Dad: Tax Savings and College Investing Ideas
