A few days ago
Julie P

I have a question regarding MA 529 College Funds.?

I own many college funds for my neices & nephews. When I make contributions this year, is that $$ considered 2007 tax deferred income? If so, what is the max per account I can contribute to defer my income taxes for 2007?

Top 2 Answers
A few days ago
Desert_Prince

Favorite Answer

Your 529 contributions are after tax payments and do not reduce your tax load, hence your 2007 contributions are not tax deferred. The advantage of the 529 is that you defer the tax on the earnings.
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A few days ago
flying_bull
No, contribution to 529 is not tax deferred, the earnings from the money are. You can only take out money for the qualified expenses otherwise you have to pay penalties and taxes or earnings as well.
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