California Assembly Bill 211, currently in review by the Assembly Revenue and Taxation committee, would provide a deduction from California adjusted gross income (AGI) for contributions to a California 529 plan for funding higher education.
The present 529 plan has many advantages: funds inside the plan grow tax-free (federal and state) and money taken out is also tax-free (federal and state) if used for higher education expenses.
Adding the tax deduction for income tax payers per AB 211 would make the 529 plan an even better deal. Although a 529 plan must be started by a California resident, anyone may make a contribution to the plan and the plan beneficiary may attend higher education institutions in any state.
Contributions may be as small as $15 per pay period with automatic payroll deduction.
Please contact your local state representative to urge them to support AB 211. Go to assembly.ca.gov for email contacts for your state representatives.
Reduce student debt by funding your child’s or grandchild’s higher education with a California state income tax deduction!