Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
The Hidden Cost of State Tax Deductions in 529 Plans
Most families assume their state tax deduction for a 529 plan is free money, but recent policy shifts mean that benefit may be disappearing or shrinking. We examine how states are changing contribution limits and recapture rules, using specific examples from New York and Illinois to show why your local plan might not offer the same advantages it did five years ago. We also break down the new federal consistency requirements affecting high-income earners who used to rely on these deductions as a primary savings strategy. This episode helps you decide whether to front-load contributions now or…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.