Ask Terry Questions 529 contributions by grandparents.

529 contributions by grandparents.

By Terry Savage on October 25, 2023 | College Savings / Student Loans

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

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.



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