Why its a good idea to periodically withdraw money from your Upromise account now

[disabledvetswife]

don't forget to activate the grocery e-coupons (also valid for CVS)

[destined2rock]

I need help! I just signed up for Upromise yesterday because I'm 9 months pregnant and want to start saving for my little guy's education. I understand you can withdraw money from Upromise, but do they charge a fee for that? And is it taxed during tax season? Since my guy hasn't even been born yet, I was just planning on depositing the earnings into a savings account (with my current bank) with his name and soon-to-be social security number onto the account...would Upromise charge me or the IRS charge me for doing that?

I looked into opening a 529 account but that also confuses me...I live in Ca and Upromise doesn't offer any companies within my state. All the other companies I looked into charge too much to open an account and the fees look pretty high. I'm currently unemployed...so I need to go the cheapest route right now.

Thanks for your help!

[TiggerToo]

Just in case everyone wasn't aware of this, Upromise actually added a savings account to their list of accounts you can link. Along with the 529 plans available, they now include a savings account, that pays interest, through Sallie Mae. That is what I did, because at this point I did not have enough funds in my Upromise to actually open a 529. So until I do, on a periodic basis, Upromise sweeps the funds to the Sallie Mae savings account I opened up (through Upromise) and I am now earning interest on the moolah!

I need help! I just signed up for Upromise yesterday because I'm 9 months pregnant and want to start saving for my little guy's education. I understand you can withdraw money from Upromise, but do they charge a fee for that? And is it taxed during tax season? Since my guy hasn't even been born yet, I was just planning on depositing the earnings into a savings account (with my current bank) with his name and soon-to-be social security number onto the account...would Upromise charge me or the IRS charge me for doing that?

I looked into opening a 529 account but that also confuses me...I live in Ca and Upromise doesn't offer any companies within my state. All the other companies I looked into charge too much to open an account and the fees look pretty high. I'm currently unemployed...so I need to go the cheapest route right now.

Thanks for your help!

[jolly321]

Bumping this for updates!