Anonymous wrote:
Anonymous wrote:The fund option on the VA529 aren’t as good as what I see on Fidelity’s 529.
Is the VA 4K tax deduction worth sticking with the VA plan?
Are you new to this? The VA 529 has passive market index funds (Total, Mid cap, aggressive, etc.) as well as target-date funds that you can invest in. Also the limit is $4K per account per parent. There are about 10 funds in the VA plan so at least $40K per beneficiary per parent and you can claim the entire amount as a deduction against state taxes, not to mention the tax-free growth. Of course, there's the annual gift tax limit ($18K/yr. for 2024) to consider.
For my kids, we invest $36K for each kid ($18K per parent) into the 529 and claim a deduction for the entire amount. The state of VA gives me back $2,070 at tax time (5.75% marginal tax rate). Have been doing this for years (lower thresholds for previous years of course).
I'm not sure you get the state tax deduction if you invest in the Fidelity 529 though.
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