529 College Savings Plans Across Multiple States - Maximizing Tax Deductions

Thanks for the info! I'm in a similar situation but with Ohio and Michigan. Does it matter which state plan I use first if both states give deductions? Also, are there any gotchas with maintaining multiple 529s for the same kid?

If both states offer deductions regardless of which state's plan you use, then I'd recommend comparing the plans based on their investment options, fees, and performance. Choose the better performing plan with lower fees. For multiple 529s for the same child, the main challenge is just keeping track of everything. You'll need to manage multiple accounts and remember to consider the total balances across all accounts when making withdrawal decisions. Also, be careful not to exceed the maximum contribution limits when you combine all accounts for one beneficiary - these vary by state but are typically around $300,000-$500,000 total.

How does it handle the superfunding aspect? I'm moving between Texas and Minnesota and want to do the 5-year superfunding thing but worried about screwing up the tax paperwork since Texas has no income tax but Minnesota does.

I'm skeptical about using a service for this. Couldn't you just call the 529 administrators directly in each state? They should know the rules for their own plans.

For superfunding across states, the tool helped me understand how to split the contributions to maximize the deduction in Minnesota while still taking advantage of the full 5-year gift tax exclusion. It walked me through exactly how to file the gift tax forms when doing superfunding across multiple state plans. Regarding just calling 529 administrators, I tried that first and it was frustrating. Each state only knows about their own plan rules, not how they interact with other states. The real complexity is in the cross-state optimization and tax implications when you have income in multiple states. The 529 administrators couldn't help me with that intersection.

Wait, how exactly does this work? Do they just call for you? I'm confused how a service can get through state tax department phone trees faster than I can myself.

This sounds like BS honestly. State tax departments are notoriously understaffed - no way some third party service can magically get to the front of the line. They probably just auto-dial all day and charge people for the privilege.

They don't just call for you - they use a combination of technology and human operators to navigate phone trees and stay on hold in your place. When they finally reach a human representative, they connect the call to your phone. You don't spend any time on hold. Regarding your skepticism, I felt the same way initially. What they do isn't "cutting the line" - they're waiting in the same queue everyone else is, but their system is doing the waiting instead of you personally sitting there listening to hold music. I was on hold for over 2 hours trying to reach my state tax department before I gave up. With Claimyr, I got a call back in about 45 minutes with an actual tax representative on the line ready to answer my questions.

I hadn't thought about state matching programs at all! Do you know if there's a comprehensive list somewhere of which states offer matching and what the income limits are? I've tried searching but keep finding outdated information.

I don't know of a single comprehensive resource that's kept updated, unfortunately. The best approach is to go directly to each state's 529 website and look for terms like "matching grant" or "scholarship" programs. As of my knowledge, states with some form of matching include: Arkansas, Colorado, Kansas, Louisiana, Maine, Nevada, North Dakota, Rhode Island, Utah, and West Virginia - but programs change frequently and have specific requirements. For instance, Louisiana will match a percentage of contributions based on income, while Maine offers a $500 grant to babies born as Maine residents. Definitely check your specific states' current offerings.

Utah's my529 is consistently rated as one of the top plans nationally. I use it even though I don't live in Utah. The fees are really low and they have Vanguard index funds options. The user interface is also way better than my home state's clunky website. Only downside is I don't get the state tax deduction since my state only gives it for in-state plans.

I've been using Utah's my529 for two years now and really like it. The investment options are solid - they have age-based portfolios that automatically adjust as your kids get closer to college age, plus static options if you want more control. The fees are among the lowest I've found (around 0.17-0.20% for most options). Since you're in Utah and Idaho, you'll want to check if Idaho gives you a deduction for contributing to Utah's plan or only their own. Some states are more flexible than others. If Idaho only gives deductions for their own plan, you might want to split contributions - put enough in Idaho's plan to max out that deduction, then put the rest in Utah's plan for better investment options. The online portal for Utah's plan is definitely user-friendly compared to some other states I've dealt with. Easy to set up automatic contributions and track performance.