<p>New York residents here. Not sure if the rules have changed but it was not a hassle to set up the 529. Had one for each of 3 children. Remaining balance if any, was transferred to the next with a click of the mouse. After setting up with minimal amounts we would take other money, deposit it in 529, and 10-14 days later withdraw it, deposit in regular account and write a check to University of ***** That indeed is/was the loophole. No set time the money needed to be in the 529. Just enough time for paperwork, if you will.</p>
<p>happymom - depending on the state, the state tax deduction may be 5% or more on contributions to the plan (and the contributions often - depending on state - only have to be in the 529 for 10 days or so. We do what bluejay does, and saved nearly $1000 in state income tax last year - see my earlier post in this thread and other 529 threads).
5 or 6% beats by a mile anything you will get on a CD anywhere.
It’s VERY easy to set up a 529.</p>
<p>Thanks for the info on ease of set up. With only one kid to give the money to, and no college savings until this year, there just didn’t seem any point to us setting up a 529. I’ll have to check out our options here in MD.</p>
<p>Here’s for Maryland, whose plan is administered by T. Rowe Price:</p>
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<p>[FAQs</a> - Maryland College Investment Plan - College Savings Plans Of Maryland](<a href=“http://www.collegesavingsmd.org/college-investment-plan-faqs.aspx]FAQs”>http://www.collegesavingsmd.org/college-investment-plan-faqs.aspx)</p>
<p>I wish California gave tax benefits to 529 contributions.</p>