What Are The Benefits of Using My Own State’s 529 Plan?

Tags: state 529 plans, advisor-guided 529 plans

And for even more latitude, you do not have to use your own state’s 529 Plan. We talk about Florida’s 529 Plan because of our geography, as we are Investment Managers in Florida. But in fact, we suggest you select the 529 with the best combination of investment options, and low fee funds.  

We therefore typically recommend the Utah, Nevada, or New York Plans. For example:

New York's 529 Advisor-Guided College Savings Plan

Contributions to a New York 529 plan of up to $5,000 per year by an individual, and up to $10,000 per year by a married couple filing jointly, are deductible in computing New York taxable income. Only contributions made by the account owner, or if filing jointly, by the account owner's spouse, are deductible. Contribution deadline is December 31 postmark.

However, some states offer their residents tax benefits if they use their home state’s 529 plan. Here’s a link to a list of 529 Plans offering benefits for your review.

Overall, the prevailing approach for saving for college? Planning early is paramount. The reality is that it may take you and your family eighteen years to put enough money away. Perhaps friends and family can substitute gifts of baby blankets and toys with 529 contributions.

Have an honest talk with those who have a personal stake in your child’s future. It could prove to be a conversation that will pay dividends when it comes time to pack up that U-Haul.

If you would like help choosing and investing in a 529 or College PrePaid Plan, please contact me at derek.pilecki@gatorcapital.com or (813) 282-7870. While we believe a college education is important, we also understand it is expensive, and the process is daunting.

We do not charge fees for helping with 529 Plan accounts. We get two benefits from helping you: 1) as parents ourselves, we feel good about setting you and your child on the correct path to pay for college and 2) it enables us the opportunity to begin a discussion about your other investment needs. 

If you have a question beyond the scope of this article, feel free to visit our “Ask Us a Question” page or leave a comment below so we may assist you with your specific situation.

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