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Author: reallyalldone Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121099  
Subject: Re: 529 tax-deferred question Date: 2/10/2006 12:27 PM
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Alright. Which way is it? I've read that contributions to a 529 grow tax-deferred (http://tinyurl.com/7q5zv), and I've read that contributions to a 529 are not tax-deductible (http://tinyurl.com/czxyo). So are the contributions a deduction or not?

Contributions to a 529 are not deductible on your Federal taxes, however, earnings are not taxable when used for qualified education expenses for the beneficiary.

As far as your state taxes, it depends on the state and the plan. Check your state tax instructions.

rad
P.S.(I did not read the links - I just posted what I know)
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