I know a number of folks on this board have already completed, are currently enrolled in, or considering a full time MBA program. I have about 1/5th of the amount I need in order to complete a full time program with no debt and was considering a 529 savings plan because of the tax benefit. Has anyone done something similar? Is it even possible for me to open one for myself? Any major drawbacks for doing something like this?
Sure, you can start a 529 for you. On the plus side, you should get a state tax break, and, obviously, your investments grow tax free. And, if you don’t use it, you can transfer it to a relative or hold on to it until you have kids and transfer it to them. It’s very portable. Drawbacks include lack of investment flexibility, and time. If you’re planning on going back to school in the near future, it may not be worth the hassle of setting one up. If you qualify for a ROTH IRA I’d recommend funding that first.