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Old 04-06-2011, 08:45 PM
 
Location: NJ
4,940 posts, read 12,145,323 times
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What type of college savings plan do NJ residents use? We want to start saving soon for our child. I have heard NJ does not allow tax deductions for money paid into a 529 plan. Is that true?
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Old 04-06-2011, 09:36 PM
 
Location: NJ
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I definitely don't use the NJ 529 plan. Can't remember which state I am using.
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Old 04-07-2011, 05:00 AM
 
Location: NJ
4,940 posts, read 12,145,323 times
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Quote:
Originally Posted by manderly6 View Post
I definitely don't use the NJ 529 plan. Can't remember which state I am using.
So NJ lets you deduct contributions to other state's plans?
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Old 04-07-2011, 07:00 AM
 
Location: NJ
17,573 posts, read 46,141,127 times
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Quote:
Originally Posted by ansky View Post
So NJ lets you deduct contributions to other state's plans?
Honestly I don't remember the specifics. But when I talked with my financial advisor there were other state plans that were more benefitial to a NJ resident than the NJ plan.
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Old 04-07-2011, 07:08 AM
 
Location: West Orange, NJ
12,546 posts, read 21,402,201 times
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I'm fairly certain NJ doesn't allow the tax deduction ansky. a great resource is kiplinger's website (or cnn money, or smart money, etc). they talk about the benefits of each state plan. i'm pretty sure it's either nevada or utah that offers the best plan, if you don't get state tax deductions. i need to do this too!
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Old 04-07-2011, 08:31 AM
 
Location: Randolph, NJ
4,073 posts, read 8,979,830 times
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NJ's plan has traditionally not measured up well vs. other states. I set mine up years ago and went with NY. Low admin costs and good investment choices (I like Vanguard funds) were my deciding factors.

Good luck.
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Old 04-07-2011, 09:01 AM
 
173 posts, read 818,791 times
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I am an idjit who went with the NJ 529 plan--yes, they don't let you deduct contributions from state income--I was naively thinking (em..hoping) that the NJ government would change soon. I don't think any other states can give you any tax advantages but I am sure they do better than NJ on performance (NJ is not so great) and fees (too high in NJ's plan).

There is a wealth of information out there on 529 comparisons. A resource I always like is the Motley Fool website.
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Old 04-07-2011, 09:36 AM
 
Location: NJ
17,573 posts, read 46,141,127 times
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I just checked. I am using the one from Virginia.
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Old 04-07-2011, 09:52 AM
 
Location: West Orange, NJ
12,546 posts, read 21,402,201 times
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from 2009, but rated the top 529 plans: Kiplinger.com

Lower Your Taxes With a 529
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Old 04-07-2011, 12:00 PM
 
Location: NJ
17,573 posts, read 46,141,127 times
Reputation: 16279
Nice. My plan is on the list.
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