It can be a deduction in some states with specific plans. That’s what we do in Colorado!
Up to $6000 for married couples is tax deductible on Montana State taxes. But I would probably stop contributing at this point and move whatever they were contributing to their retirement savings. There is enough in there now with growth that I would expect there to be enough for undergrad and grad school.
Your list seems to be noticeably missing Colorado schools. You might consider poking around there.
2 Likes
I get the feeling that this family is also funding their retirement to the max. They sound very sensible.
1 Like
@parentologist yes, they’re maxing my Dad’s Roth (mom a SAHM). As an only child in a low COL state, we live sensibility.
3 Likes
@MYOS1634 you mentioned that Washington St. was in a rural area. Just coming back to thank you for confirming that suspicion. I can safely move it off my list of candidates.
1 Like
Federally I don’t believe there is a tax break (other than it growing without having to pay tax on the gains). Some states have a state tax deduction for 529 contributions. Minnesota does, it is 1500/single 3000/joint and it does not have to be a MN plan.