EFTA02069327.pdf

To: Cc: From: Sent Mon 11/2/2015 6:38:44 PM Subject RE: 401K vs 529 Question... 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 III 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 S14,000 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 From: Sent: Monda November 02, 2015 12:50 PM To: Cc: Subject: 401K vs 529 Question... Hi ...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, ******* ****** ************************ ******* ************************** The information in this email is confidential and may be legally privileged. It is intended solely for the addressee. Access to this email by anyone else is unauthorized. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. When addressed to our clients any opinions or advice contained in this email are subject to the terms and conditions expressed in the governing KPMG client engagement letter. ************** *********************** ********* **** ************ ********* EFTA_R1_00627861 EFTA02069327