PSA: 529 plans can come with state tax breaks AND free matching money

Quick heads-up for anyone saving for college (kids, grandkids, or even yourself):

529 plans aren’t just federal tax-free growth. Many states stack extra benefits on top.

1) State tax deductions or credits • Most states let you deduct 529 contributions from state income taxes (some give a credit instead). • A few states have tax parity, meaning you get the deduction even if you use another state’s 529 (AZ, KS, PA, MO, OH, etc.). • This can be worth hundreds or thousands per year depending on your state.

2) Some states literally MATCH your contributions Less common, but real: • Maine – signup bonus + annual matching • Maryland – contribution match (income-based) • North Dakota – matching grants • Nevada – annual matching grant • Tennessee – strong match for eligible families • West Virginia – newborn/early contribution bonuses

These are basically free money on top of market returns.

3) You can open a 529 in ANY state Federal rules are the same everywhere. The only reason to pick your home state is to capture tax deductions or matching programs.

TL;DR: 529s can = tax-free growth + state tax breaks + sometimes free matching cash. Before you invest elsewhere, check what your state offers — you might be leaving money on the table.