President Trump’s massive tax bill, particularly for parents looking to stash away cash for K-12 expenses. First, a quick overview: 529 plans allow anyone — not just parents — to set aside money in an ...

Imagine you’re a diligent parent who, haunted by your own student debt, maxes out a 529 college savings plan for your kids ...

Tax-Free Growth. The gains inside a 529 plan can be exempt from both federal and state income taxes provided they are used for a qualified higher education purpose.

With a current state income tax rate of 3.07%, a Pennsylvania resident could save roughly $430 per year in taxes by contributing $14,000 to a 529 plan. As such, the state income tax deduction can ...

State. Tax Treatment of 529 Plan Contributions. California. No deduction or credit. Illinois. Maximum deduction of $10,000 ($20,000 for married joint filers) per year ...

All earnings on 529 plans grow tax-free. This means that the more contributions you make, the more opportunity you have to build your child’s 529 plan without paying taxes.

529 plan contributions and qualified withdrawals are tax-free. If you pay state income taxes, you’ll need to report 529 contributions on your tax return as well as any withdrawals for qualified ...

At the federal level, the tax benefits are straightforward, though still not uniform. Money invested in 529 plans grows tax-free, and investors do not pay capital gains taxes if they spend that ...

Thirty four states currently offer investors state tax deductions when they contribute money into their home-state 529 college savings plan. These state tax deductions, however, are relics and ...

Vermont taxpayers with an in-state 529 plan can receive the $500 upper limit in tax credit with a $5,000 contribution. The Best 529 Plans for 2025 Morningstar rates these plans as the top choices ...

A 529 plan can help you save for education and reduce estate taxes. Families could use strategies like five-year super-funding and flexible beneficiary rules to transfer wealth efficiently.