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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...
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
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Answered in 3 minutes by:
3/9/2016
Tax Professional: Stephen G., Sr Income Tax Expert replied 1 year ago
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,211
Experience: Extensive Experience with Tax, Financial & Estate Issues
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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.

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