DC 529 - separate account for each child?

[Anonymous]

Anonymous wrote:

Anonymous wrote:to maximize benefit you can have each parent open and contribute to an account for each child -- 2 x 3 = 6 accounts

only if you're trying to maximize tax benefits - at least that's how it is in VA, not sure about DC

As I read the rule, in DC, if each parent opens one or more account, each can deduct up to $4,000 total. So there's a tax reason to have at least one account in each parent's name, but not in each child's name.

yes, this is correct, up to $4000 per parent per kid. So you could get a deduction of $4000 x 2 x 3 = $24,000, plus save $ for college for each kid. Definitely the way to go. We got nice returns.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:to maximize benefit you can have each parent open and contribute to an account for each child -- 2 x 3 = 6 accounts

only if you're trying to maximize tax benefits - at least that's how it is in VA, not sure about DC

As I read the rule, in DC, if each parent opens one or more account, each can deduct up to $4,000 total. So there's a tax reason to have at least one account in each parent's name, but not in each child's name.

yes, this is correct, up to $4000 per parent per kid. So you could get a deduction of $4000 x 2 x 3 = $24,000, plus save $ for college for each kid. Definitely the way to go. We got nice returns.

No, that is not what I am saying. I'm saying it is $4,000 per parent total. It is not $4,000 per kid. So you could have both parents open an account for the same kid and save $8,000 for that kid. Or you could have both parents open an account and each name a different kid, saving $4,000 per kid. There is no way to take a tax deduction of more than $8,000, because each parent is limited to a $4,000 deduction.

I just called the program to confirm I was interpreting this correctly. So I think if you believe you took a $24,000 deduction, you are either misremembering or you just happened to get away with an illegal deduction.