Fund a 529 and spend it without triggering a penalty

  1. Look up your state's 529 deduction rules
    45 min

    This step produces the one-page sheet every later decision leans on: your state's deduction cap, its limits, and the tax year the rules apply to. It is tricky because states write these rules differently — the cap may run per beneficiary or per account, some states phase the deduction out by income, a few restrict the beneficiary's age, and rollover contributions often do not count like new ones.

    1. Open your state's revenue or treasury site — search “[your state] 529 tax deduction” and take the .gov result over third-party summaries.
    2. Open the 529 or qualified tuition program (QTP) page, not the plan's marketing page.
    3. Write down each field: the maximum deductible contribution per year and whether it is per beneficiary or per account; any income phase-out; any beneficiary age limit; whether the deduction covers contributions only or also rollovers into the plan.
    4. Note the deadline the state sets — most states require the contribution to post by December 31 of the tax year you claim it on.
    5. Record the page URL and the tax year (for example, 2026) at the top of the sheet, so the source stays checkable.