30 Dec Can I use a N.Y. 529 plan even though I live in N.J.?
Q. I just moved to New Jersey from New York. I understand my contribution to a 529 plan is no longer deductible on state income tax returns. Can I still make contributions to the old New York plan?
A. Welcome to the Garden State!
We’re glad to hear that you’re saving for college.
A Section 529 plan is a tax-deferred account designed to accumulate funds to pay for college tuition, room, board and most fees, said Claudia Mott, a certified financial planner with Epona Financial Solutions in Basking Ridge.
Then the Tax Cuts and Jobs Act of 2017 extended the use of 529 plans to include up to $10,000 a year for public, private or parochial elementary or secondary school, she said.
You can still make contributions to the New York plan even though you’re no longer a resident there.
Email your questions to moc.p1610809195leHye1610809195noMJN1610809195@ksA1610809195.
This story was originally published on Dec. 30, 2020.
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