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529 with upcoming move

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  • 529 with upcoming move

    Currently live in Virginia and have two kids. Have a Virginia 529 for the 4k yearly deduction for my toddler. Also have a newborn and I have not opened up a 529 for her yet. I'm about to move to California (I know I know) - is it worth starting her 529 for the one time 4k deduction this year for Virginia or would there be any kind of benefit (no state deduction that I'm aware of) to creating her a California 529 (or other state)? Thoughts are appreciated. Thanks.

  • #2
    Does this one help?

    Meaning... Worth doing in VA, but not CA, because CA doesn't offer a tax deduction or credit?


    • #3
      The contribution to the Virginia529 and associated deduction is worth doing prior to moving to CA. Once there consider opening CA ScholarShare 529 accounts for future contributions*.

      While there is no CA deduction for 529 contributions. Last I knew ScholarShare had the lowest expense ratios of any nationwide 529 plan.

      *Rollovers out of Virginia529 are subject to a recapture tax.