Wednesday, September 13, 2006

More States Offering 529 Tax Breaks

For may of us young ones, there is more good news regarding 529 plans - more and more states are giving tax deductions to these saving devices as shown in this usatoday article:

Pennsylvania, Maine and Kansas have approved such tax breaks, and a handful of other states are considering similar measures. Previously, these states offered either no tax deduction or a deduction only if a resident contributed to the state's own 529 plan.

But for all my peers living in states that don't currently have, or are planning, state tax breaks, don't get your hopes up. There is a significant tax income loss when the breaks are given that will keep a number of states from offering them.

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