First, although contributions are not deductible from the donor's federal income tax liability, in 34 states, there is a state tax incentive--either a deduction or a credit--for residents investing in their home state's 529 savings plan.
Contributions are not deductible from the donor's federal income tax liability. This is in 34 states. There is a state tax incentive--either a deduction--for residents. This is first. There is a state tax incentive--either a credit--for residents. This is first. These residents are investing in their home state's 529 savings plan.