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One of the many important factors to consider when selecting a 529 plan is whether
or not your state offers a tax deduction or credit for contributions made to the
in-state plan. The 529 State Tax Deduction Calculator helps you quantify the value
of your state's tax deduction or credit applied over your investment horizon, given
your planned contributions, taxable income and filing status. This will allow you and
your advisor to assess the relative importance of this particular factor in choosing
a 529 college savings plan, in light of other important factors such as plan
investment performance, contribution limits, and additional plan features.
The Calculator allows you to compare investments in an in-state 529 plan that
offers a tax deduction or credit to investments in an out-of-state plan where the
deduction or credit is not available, illustrating the impact of the potential tax
benefit relative to potential plan performance.
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