On Tue, 11 Mar 2008 11:15:16 -0500, kastnna <kastnna[at]auburnalum.orgwrote:

- quote -

I too was skeptical but since it was in black and white we thought it
was worth a shot to double check.

Since the person in question decided not to take the job offer we
won't spend time investigating. But based on the responses here and
my phone call to the SC 529 I am now confident that there is no such
animal as a federal pre tax 529. So for whatever reason the employer
has a problem with their brochure.

-HW "Skip" Weldon
Columbia, SC

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I think we are all in agreeance that some states allow the deduction
from state income taxes. Most require that the home states plan be
used.

If I understand Skip correctly, the crux of the matter is the ability
to use the pre-tax payroll deduction as opposed to after-tax
contributions that later get deducted from state income taxes.

As I said previously, this is news to me. Skip, I have looked at well
over two dozen state and employer websites and have found nothing but
after-tax deductions. Perhaps the company is mistaken (or typoed). I
provided a recent and seemingly accurate report on 529s published in
USATODAY and it also suggest that contributions are only on an after-
tax basis.

I'd love more information on the company in question, but I must admit
I'm skeptical of their claim.

http://www.usatoday.com/money/perfi/...ans-usat_x.htm

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I assume they were referring to the tax deductible contribution some
states offer (not federal deduction). Nebraska is one of those
states, up to $5000. I've never seen it as an employer-provided
deduction, but I really like the idea.

Mike

On Mar 10, 10:56 am, "HW \"Skip\" Weldon"
<skip5700removet...[at]hotmail.com> wrote:
- quote -

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stevedhoward[at]gmail.com wrote:
- quote -

http://www.savingforcollege.com/top-...?top_tip_id=13
states that 28 states (plus DC) offer a state deduction, all but PA
require the plan be the state's own 529 plan.

I've not seen any talk of the 529 being a federal tax deduction.
Joe

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On Mar 10, 11:56 am, "HW \"Skip\" Weldon"
<skip5700removet...[at]hotmail.com> wrote:
- quote -

I know that some states (Ohio being one) offer it. I have not seen it
as a payroll deduction, but when filing I can deduct the contribution
from my *state* income taxes.

http://www.collegeadvantage.com/cms....D=35&Year=2006

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HW "Skip" Weldon wrote:
- quote -

Typo? Or...pre-tax with respect to state income taxes, because of
something unique to the state?

-Tad

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(regarding a pre-tax 529).

Skip, in what state was this offered and from what employer? I must
admit, I've never heard of such either.

Many state plans do allow payroll deduction (if the employer also
supports it) but the deductions are usually post-tax.

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I have not heard of a pre-tax 529. Today, while looking at an
employer's overall benefit plan, a pre-tax arrangement was clearly
offered to employees. Perhaps I was taking a nap when they were
announced. Comments?


-HW "Skip" Weldon
Columbia, SC

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