I recently moved from NY to NJ. I use New York's 529 College Savings Program Direct Plan for my three kids. Now that I am residing in NJ, should I open the NJBEST 529 College Savings Plan? Should I stay with New York's 529? Would I still qualify for the state tax reduction? Do I stop contributing to the New York's 529 plan? Any suggestions on how to move forward would be greatly appreciated! Thank you in advance.
529 Plans – College Savings Plans
byu/Kevin_cop inpersonalfinance
Posted by Kevin_cop
2 Comments
You would leave the ny 529 as is and start contributing to the nj 529 so you can keep getting state tax deductions
The compounding growth will be practically identical in the end
100×10%=[(80×10%)+(20X10%)]
I think you only get the state deduction if you use the in-state plan. I had used a 529 through USAA and I could claim Federal but not State on contributions to that account. The Connecticut plan is through Fidelity and I ultimately switched to that for our kids, and claimed the deduction. But you might want to see how well the in-state 529 is performing versus the old one, because you have to also factor in the rather modest deduction you get get with the in-state plan, but if the in-state plan is performing poorly versus in other plan, you might still be losing money even with the deduction.