The article discusses the significant tax advantages offered by Indiana's 529 college savings plan, where contributions yield a 20% tax credit from the state. This incentivizes families to save for their children's education, providing immediate cash back on state taxes. In contrast, the author highlights the lack of such benefits in states like California, which diminishes the appeal of 529 plans for residents there. The author’s personal experience reflects a broader comparison of 529 plan benefits across states, showcasing that tax advantages vary considerably.
Contribute up to $7,500 annually to Indiana's 529 Direct savings plan, and the state government will give you a tax credit of 20% of your contribution.
Hearing that, the No. 1 best reason I personally know of for investing in a 529 plan went up in smoke when I learned California offers no state tax break.
Collection
[
|
...
]