[keats5]

Well, every year at tax time this question arises for us and we learn that at our income level, we would not get any tax break for a 529 plan, which is the whole point of the plan. I understand it differs depending on which state you’re from.

[reaganaut1]

Well, every year at tax time this question arises for us and we learn that at our income level, we would not get any tax break for a 529 plan, which is the whole point of the plan.

Maybe your state won't give you an income tax deduction in the year you contribute because of your income, but investment gains in the account will still not be taxed, unless Obama gets his way. The untaxed gains when used for college are the main point of 529 plans.