What are the tax benefits of a 529 plan?
An example of an AI chatbot conversation about 529 plan tax benefits.
What are the tax benefits of a 529 plan?
A 529 plan offers tax-free growth on investments and tax-free withdrawals for qualified education expenses.
Are there any state tax deductions for contributions?
Yes, many states offer tax deductions or credits for contributions to a 529 plan, but it varies by state.
Can I use the funds for K-12 education?
Yes, you can use up to $10,000 per year for K-12 tuition expenses from a 529 plan.
What happens if I don't use all the money?
If you don't use all the money, you can change the beneficiary or withdraw the funds, but taxes and penalties may apply.
Is there a limit on how much I can contribute?
While there are no annual contribution limits, contributions are subject to gift tax limits, and each state has its own maximum.
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