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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Guizmo on March 24, 2017, 05:22:06 PM

Title: Colorado 529 account to fund Masters
Post by: Guizmo on March 24, 2017, 05:22:06 PM

Hi folks,

My understanding is that I can open a 529, fund it and pay for my masters all while receiving a tax deductible deduction in the state, which taxes at 4.39 %. Does anyone have experience doing this? Am i missing anything here?

Thanks,

Guillermo

Title: Re: Colorado 529 account to fund Masters
Post by: C-note on March 24, 2017, 05:51:23 PM

Be sure the 529 you use applies to the state in which you reside.

The tax deduction was a bit of a let-down considering how much we paid in tuition - and the amount at which we funded the 529 - but I guess that's a direct correlation to our income.

Every little bit helps.  I was hoping for a bigger bit(e) out of our tax liability.

Title: Re: Colorado 529 account to fund Masters
Post by: Guizmo on March 24, 2017, 07:30:33 PM

Yeah, I was hoping it allowed me to deduct federal taxes. I'm happy that I'll save at least $800 bucks.

Title: Re: Colorado 529 account to fund Masters
Post by: Davids on March 25, 2017, 12:37:39 PM

And don't forget all the interest you earn in the 529 is tax free as long as it is used to pay for your education. State tax deduction if you qualify for one is sort of the icing on the cake,