Hi -
This feels basic but I am getting wrapped around the axle.
Very high income earner in very high income state.
Would like to max out 529 plan for child (grade school/college/grad). I have reviewed the pros/cons of underfunding versus overfunding and let's assume we will be funding around $400k.
Question: my state offers a $2500 deduction, which we can carry forward. In our lifetime, that really means we will only be able to deduct about 200k to 250k (40 years (?) x $5k joint deduction).
If that is correct, does that mean we have complete flexibility to choose another 529 plan (e.g. another state or Vanguards 529 plan) after we hit the 200k mark because we will not see any other tax benefits with staying with our state plan?
This feels basic but I am getting wrapped around the axle.
Very high income earner in very high income state.
Would like to max out 529 plan for child (grade school/college/grad). I have reviewed the pros/cons of underfunding versus overfunding and let's assume we will be funding around $400k.
Question: my state offers a $2500 deduction, which we can carry forward. In our lifetime, that really means we will only be able to deduct about 200k to 250k (40 years (?) x $5k joint deduction).
If that is correct, does that mean we have complete flexibility to choose another 529 plan (e.g. another state or Vanguards 529 plan) after we hit the 200k mark because we will not see any other tax benefits with staying with our state plan?
Statistics: Posted by gretnagritty — Tue Mar 19, 2024 8:36 am — Replies 2 — Views 104