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[quote=Anonymous][quote=Anonymous]Son has a 529 plan in Virginia. Bought in VA so I could deduct $4K each year from taxes since we are residents.  After selling a house this year, I’d like to pour money into his 529.  I know the most I can do is $70K to avoid gift tax ($14K max/year split over five years).  But I’m a little confused on these specifics:  If I buy $70K in one transaction, that means I can’t contribute anything else for the next five years, correct?  But can I still deduct $4K on my VA taxes for 2014-2018?    A little more background—my son is 2 and I’m maxed on retirement, 6 month savings, etc so I thought this would be a good place to park some money.  Feel free to comment on this plan of action-I know you DCUM-ers are not shy about opinions and I can appreciate all points of view!  Thank you![/quote]

Remember that it's 4K per year [b]per account[/b].  There are 4 different types of accounts in VA - 2 investment, 1 prepaid, 1 cash and .  You could spread the money into all 4 accounts and deduct 16K per year, if this investment makes sense for you.  But given the age, I think the first 3 accounts would make more sense than the cash option.   I know at least one person that actually does this.  Wish I could personally afford to do this..

I'm not a tax/investment professional so please check with yours.    [/quote]

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