Yes, it's income based. It phases out after $175k.

Feb 26, 2021
5:19:17pm

goldengoose Redshirt Freshman

Once you setup Maryland 529 account you need to apply for the save4college state contribution program.

You can see the details here

maryland529

State Contribution Program

College Savings Plans of Maryland | The Maryland Prepaid College Trust and The Maryland College Investment Plan

https://maryland529.com/Save4College

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goldengoose

Bio page: goldengoose
Joined: Nov 29, 2011
Last login: Oct 31, 2024
Total posts: 930 (1 FO)

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Messages

Author

Time

Help me wrap my mind around 529 plans.

CougaRR4L

2/26/21 2:25pm

It’s not that great. In my state I get a deduction on State income tax for

Iman23

2/26/21 2:29pm

In my state you can apply for the state to deposit up to $500 annually

goldengoose

2/26/21 2:35pm

Is that based on income? What do you mean apply for it?

Iman23

2/26/21 2:51pm

Yes, it's income based. It phases out after $175k.

goldengoose

2/26/21 5:19pm

The answer to your first question is yes.

HenderCoug

2/26/21 2:35pm

Haha. Good catch. Edited.

CougaRR4L

2/26/21 2:37pm

I’m saving 6.9% on my state tax.

BoiseCougar

2/26/21 2:35pm

So a few hundred bucks a year?

rggee

2/26/21 3:19pm

Yep

BoiseCougar

2/26/21 3:23pm

It can be used for any educational expenses, not just tuition

WhoisJohnGalt

2/26/21 2:36pm

Why is it a .25 deduction? It’s only on state income tax, which in my state is 5

Iman23

2/26/21 2:50pm

It depends on the state

WhoisJohnGalt

2/26/21 2:57pm

Wow. That’s pretty awesome benefit. I think most states allow the transfer

Iman23

2/26/21 4:18pm

I think Utah is capped around a $200 credit

rivercitycoug

2/26/21 4:31pm

See that sounds more worth it to me.

CougaRR4L

2/26/21 8:28pm

Can a person use one of these plans for grandchildren's college expenses?

fulano

2/26/21 2:43pm

Yes

Iman23

2/26/21 2:50pm

I do it just because it forces me to contribute or remember doing it..

cougfanz

2/26/21 2:56pm

If you aren't going to pay for your kids' college tuition, then don't do a 529

El Paso Coug

2/26/21 2:58pm

You can also pay for education expenses from your own Roth IRA with no early

rivercitycoug

2/26/21 3:05pm

You can only withdraw your contributions though right? So no investment benefit.

Pepe

2/26/21 3:15pm

True, but the investment benefit is eventually there for you at 59 1/2

rivercitycoug

2/26/21 8:39pm

529’s suck - too many restrictions and zero guarantees - not what you need

Jersey hunter

2/26/21 3:12pm

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