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Plus, 529 savings plan contributions can be invested, similar to the structure of a 401(k), and any investment profits used to pay for qualified education expenses are 100% tax-free.
So long as you use the money for education, you won’t owe taxes on the investment gains. ... Maximize all the ways a 529 plan can give you tax benefits, including tax-free earnings and potential ...
529 plans are named after section 529 of the Internal Revenue Code—26 U.S.C. § 529.While most plans allow investors from out of state, there can be significant state tax advantages and other benefits, such as matching grant and scholarship opportunities, protection from creditors and exemption from state financial aid calculations for investors who invest in 529 plans in their state of ...
Many 529 plans let you deduct contributions from your state income taxes, plus the growth and withdrawals are tax-free when used for qualifying education expenses. Student Loan Interest
Tax-free growth for education. A 529 plan gives you a tax-advantaged way to save for education. ... Now a 529 plan can be used to pay off up to $ ... investing in another state’s 529, as there ...
In Indiana, for example, parents can contribute up to $7,500 per year to a 529 plan, and receive a tax credit of 20% of that amount. That's $1,500 per year in free money!