By Jamie Canup, Chair of the Tax Practice, Hirschler Fleischer
December 23, 2019
The holiday season is a time to reflect on both the things we want to accomplish before the year ends and renewal in the new year. It’s also a time of give gifts. All these disparate thoughts can come together nicely (amazingly) by taking the time now to make one last, or perhaps the first, contribution to a 529 plan account. If you haven’t made that contribution yet, there’s still time, and by doing so you are letting your loved one know that you believe in them and want to help them succeed in life. Isn’t that a meaningful and encouraging message to give someone during the holiday season?
Best of all, many 529 plans give you a gift in return when you contribute to your 529 plan account — in the form of a state income tax deduction or credit. You’ll need to check to see if your state’s plan provides a state tax benefit. Click on “529 Plan Info” on this website and either scroll through “My State’s Plan” or “Compare Plan Features” to learn about the state tax benefits a 529 plan provides to its residents or taxpayers.
Once you have made that contribution to a 529 plan and learned about any state tax benefits that may be available to you, you are now ready to enjoy the holiday season while facing the new year committed to making regular contributions to your 529 plan account. It’s a trifecta! You’re making a lasting gift to your loved one during the holidays, establishing good saving habits for the long-term, and receiving a state income tax benefit. Ho Ho Ho!! Happy Holidays to all.
About the author:
Jamie Canup is Chair of the Tax Practice at the law firm of Hirschler Fleischer based in Richmond, Virginia. He is also an active member of CSPN (and a former Chair of the Corporate Affiliates Advisory Board of CSPN), a frequent speaker at conferences and webinars on issues concerning tax-favored education provisions of the Internal Revenue Code, and he has been quoted in The New York Times, USA Today, The Wall Street Journal and other publications on 529 plans. He can be reached at firstname.lastname@example.org