Author Topic: Starting a 529  (Read 1351 times)

Captain FIRE

  • Bristles
  • ***
  • Posts: 407
Starting a 529
« on: September 27, 2017, 12:07:02 PM »
My state offers a state tax deduction, up to $1000.  Can my husband and I set up one plan to get the deduction for our kid (putting in $2k) or do we need to set up two separate 529s with $1k each?

nobody123

  • Pencil Stache
  • ****
  • Posts: 524
Re: Starting a 529
« Reply #1 on: September 28, 2017, 09:40:10 AM »
My state offers a state tax deduction, up to $1000.  Can my husband and I set up one plan to get the deduction for our kid (putting in $2k) or do we need to set up two separate 529s with $1k each?

It depends on your state and its rules.  My state lets you deduct $2K/beneficiary/year with unlimited carryover regardless of filing status.  So even if wife and I opened two 529s for one of our kids, we could only deduct $2K total, not $4K.

NeonPegasus

  • Bristles
  • ***
  • Posts: 374
  • Location: Metro Atlanta, GA
    • Neon Pegasus
Re: Starting a 529
« Reply #2 on: September 28, 2017, 11:18:58 AM »
In GA, the deduction is per kid and based on your filing status. Check your state rules.

Captain FIRE

  • Bristles
  • ***
  • Posts: 407
Re: Starting a 529
« Reply #3 on: September 28, 2017, 11:23:51 AM »
It allows deducting $2k per married couple filing jointly - I just didn't know whether that meant we could have only one plan rather than two.

NeonPegasus

  • Bristles
  • ***
  • Posts: 374
  • Location: Metro Atlanta, GA
    • Neon Pegasus
Re: Starting a 529
« Reply #4 on: September 28, 2017, 11:28:45 AM »
It allows deducting $2k per married couple filing jointly - I just didn't know whether that meant we could have only one plan rather than two.

If they say $2k per mfj, then you can put that amount in one plan. There's no need for two plans for the same kid.

Captain FIRE

  • Bristles
  • ***
  • Posts: 407
Re: Starting a 529
« Reply #5 on: September 28, 2017, 01:28:20 PM »
Great, thanks!