Your federal benefit is tax-free growth. The bonus is the state deduction, and it differs wildly state-to-state.
2024 State Benefit
Deductible (or credit base)
$0
Estimated state tax saved
$0
State cap (your status)
$0
Out-of-state plan allowed?
,
Federal: §529 distributions for qualified higher-ed and up to $10K K-12 tuition are tax-free. Excess contributions trigger 5-year election under §529(c)(2)(B), front-load $90K single / $180K MFJ.
2024 federal 529 contribution annual exclusion $18,000/donor (§2503(b)). State amounts: NY $5K single / $10K MFJ; IL $10K / $20K; PA per beneficiary up to annual exclusion; OH $4K/beneficiary; VA $4K/beneficiary; MD $2,500/beneficiary; UT credit (4.55% of contrib up to $2,410 single / $4,820 MFJ); IN 20% credit up to $1,500. Per IRC §529 and state statutes. Verify current-year amounts with state DOR. Call 689-331-5723 or email info@zerofusstaxes.com.