Are 529 contributions tax-deductible? - Fidelity Investments

1 day ago · Contributions to a 529 plan are never deductible on your federal income tax return. Depending on where you live and the 529 plan's rules, you may be eligible for 529 tax benefits as a deduction or credit on your state income tax return. Withdrawals, including any investment …

CouponFollow Extension

$1000
OFF

A Smart And Simple Way To Save For Your Child’s Future.

2 weeks from now

state income tax deduction for contributions to the U.Fund Plan. Single persons may claim up to a $1,000 state income tax deduction, and married persons filing jointly may claim up to a $2,000 …

fidelity.com

$20000
OFF

Triple Tax Benefits When You Open And Contribute To An Oklahoma …

2 weeks from now

Read it carefully. Oklahoma taxpayers can reduce their state taxable income by up to $20,000 if married filing jointly ($10,000 filing single) from contributions made into an Oklahoma 529. …

oklahoma529.com

FAQs about Are 529 contributions tax-deductible? - Fidelity Investments Coupon?

Can a fidelity 529 plan be used at a college?

Funds from a Fidelity 529 plan can be used at colleges nationwide. However, if you do not reside in one of the states that offers Fidelity 529 plans, you may be giving up a state tax benefit if you choose to open an out-of-state plan. ...

Are 529 plans tax deductible?

Unlike an IRA, contributions to a 529 plan are not deductible and do not have to be reported on federal income tax returns. What’s more, the investment earnings in your account are not reportable until the year they are withdrawn. 529 plans save taxpayers billions of dollars on their income taxes. ...

Does fidelity pay taxes on a 529 account?

Also, no account minimums required to open a Fidelity-managed 529 account. Withdrawals for qualified education expenses are free from federal income tax. For non-qualified withdrawals, the portion attributed to investment earnings is subject to federal and state income taxes plus a 10% federal penalty. ...

What is the expense ratio on fidelity 529 plans?

Depending on the investment option chosen, total asset-based expense ratios on Fidelity 529 plans range from 0.10% to 0.95%. However, expense ratios on the Fidelity Index Portfolios range from just 0.13% to 0.14%, which compare very favorably to many other 529 plan options. ...

Should a 529 plan be included on your tax return?

While 529 plans are relatively low-maintenance savings vehicles, there are times when account activity will need to be included on your tax return. Here’s what to be aware of this tax season if your family has a college savings plan: 1. Determine if you need to report anything ...

Is fidelity index a good 529 plan?

However, expense ratios on the Fidelity Index Portfolios range from just 0.13% to 0.14%, which compare very favorably to many other 529 plan options. In addition, there are no enrollment fees or account maintenance fees, and there is no minimum to open a new account. ...