An unusual 529 college plan question

[Dixie]

My wife Dixie is going back to school next month. She's pursuing her third degree.

Here's the question. Can I open a S.C. 529 plan in her name, Put money in it, and then turn right around and pay her tuition from the 529? If I do this, the money used for tuition, books, PC's, and more is exempt from SC income taxes. I can't find any reason I can't do this. Can anyone come up with a reason why I can't do this?

As a bonus here's a recent photo of Dixie. If you've ever been to CMP you've most likely met her.

[PorscheGAL]

I would see no reason you can't. Sounds like a good plan. You get the benefit of the state write off and a federal write off after she starts school.

[gr8fl4porsche]

From everything I have read, your idea is valid. Just check on the minimum - maximums for your state.

[carambola]

i don't know about SC but in the PA plan i am in, the money put into the 529 has already been taxed, just the profits made on investments is tax free if used for education.

[Dixie]

Originally Posted by carambola

i don't know about SC but in the PA plan i am in, the money put into the 529 has already been taxed, just the profits made on investments is tax free if used for education.

That's true in S.C. as well. (All 529s really.) But in SC you also get to deduct the amount contributed from your income when filing your current year taxes. That is, provided it's put in the S.C. 529 plan. The min. is $250 and the max. is $310,000. I think her college costs will fall neatly between those two figures.


Looks like I need to open an account pronoto. Classes start May 17.

[lukeh]

I thought there was something about a max age of 30 on these accounts. That is the only potential problem I could think of.