RE: Fidelity U-Plan

From: "Harold R. Justice" <hjustice@concentric.net>
Subject: RE: Fidelity U-Plan
Date: Sun, 26 Dec 1999 17:45:13 -0600

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Ira,

I checked into this once and was told off-campus housing and off-campus
meals are not
valid expenses. This is a reimbursement account so you have to
accumulate valid
expenses, such as paid tuition,  and then you ask for reimbursement. I
concluded that
the paper work involved was too much and the fact that most kids live
off campus
would greatly cut out valid expenses. Room, board, and clothes cost much
more than
tuition at most colleges.

Harold

>
>
> ------------------------------
>
> Date: Sat, 25 Dec 1999 11:34:17 -0500
> From: Ira Krakow <ikrakow_1999@yahoo.com>
> Subject: Fidelity U-Plan, anyone?
>
> Anyone use the Fidelity U-plan for saving for college for kids.  The =

> plan appears to have attractive features.  One of the features
Fidelity =
> is pushing is that you can put up to $50K in the plan and avoid gift
tax =
> (although it may be that you can't do any gifts for 5 years if you put
=
> in that much).  Also, the proceeds when taken out are taxed at the =
> child's rate.
>
> Any down sides (limits on investments, colleges that the kids may or
may =
> not attend, what happens if the kids decide to do something else - can
=
> they take the money and "run" away from college?).
>
> Happy holidays to all.
>
> Ira




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