Log in Subscribe

Numerous advantages to '529' college savings program

Posted 9/29/23

What can be better than lowering your taxes? With a 529 plan, you have no federal tax obligation once your money's invested in your account. But the best part is that your earnings grow federal tax-deferred, and qualified withdrawals are tax-free. Some states have other tax benefits tied to the program as well.

Deduction. For example, in New York up to $10,000 is deductible from the state taxable income for married couples filing jointly; single taxpayers can deduct up to $5,000 annually. (This may be subject to recapture in certain circumstances, such as rollovers to another state's 529 plan or nonqualified withdrawals).

This item is available in full to subscribers.

Please log in to continue

Log in