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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7024
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I'm planning to get a 529 plan from out of state. The

Customer Question

I'm planning to get a 529 plan from out of state. The benefit I'm looking for is the possibility of tax deductions on contributions. What are the issues I might run into if I go with these type of plans?
Submitted: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year ago.

There are no tax deductions associated with contributions to a 529 Plan. The only tax benefit is that if the plan's assets are used for education expenses there is no income tax on earnings while in the plan, so the recipient may withdraw the funds free from tax when they use the funds for college.

Steve G.