529 contributions by grandparents.
Hi Terry! We recently made a contribution to a 529 account FBO our grandson. They live in Kentucky. I don’t have account details, it’s run by Thrivent Financial, our son is listed as the account owner. We are Illinois residents: are we entitled to any type of tax deduction, either state or federal, for our 2023 taxes due to this contribution? Would we be entitled to tax deductions for future contributions? Thanks!
Terry Says
No, you only get a state tax deduction for the Illinois Bright Start plan. And may I suggest you open a second 529 account in this plan at BrightStart.com
It’s perfectly fine to have two plans. And I’m betting that yours will perform better over the long run. Just use the “age-based” plan, with yourself as custodian.
