Reply to Where to put college money after you max out 529 state tax deduction?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I got this from the other 529 thread:

[quote=Anonymous]The va invest has several vanguard funds, so I would not expect vanguard index funds in one program to outperform/underperform the same vanguard index funds in another program.

For va invest you can deduct up to 4K per contributor/beneficiary/investment combination. So if you put 4K into each of the following you could deduct 24k/year:

Husband/child/investment 1
Husband/child/investment 2
Husband/child/investment 3
Wife/child/investment 1
Wife/child/investment 2
Wife/child/investment 3

With vanguard index funds, a very generous deduction (5.75% immediate return on your investment), and only a small admin fee, there really isn't a reason not to do the invest program. [/quote][/quote]

OP here - i saw this too but didnt understand it. I think this was for one kid, but if so this is not how i understand how the deduction works. Please someone explain. [/quote]

VA code section 58.1-322(D)(7) allows a deduction for up to 4K per prepaid contract or savings trust account with the Va college savings plan (VSCP). According to the VSCP, each investment in the Invest program by the same account owner establishes a separate savings trust account if the account owner, beneficiary, or portfolio (investment option/fund) is different. See Tax Commissioner ruling 10-240, transaction 2 for confirmation in writing by the department, or page 4 of the invest program description: "Virginia taxpayers filing an individual income tax return may deduct their contributions to each Virginia529 account they own, up to 4,000 per account each year..."
 
VA invest has over 20 fund options - 9 age based funds, 8 passively managed funds (all vanguard funds), 4 actively managed funds, and 2 savings account options. So, in theory, each parent could deduct over 80k per child per year by putting 4K into each available invest fund. That would likely mean filing a gift tax return, but it could be done. [/quote]

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