Louisiana 529 Plan

Louisiana offers one 529 college savings plan, a traditional 529 savings plan called Student Tuition Assistance and Revenue Trust (START) Saving Program.

Student Tuition Assistance and Revenue Trust (START) Saving Program

START is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type:  Direct – this Louisiana 529 plan can be purchased directly through the state.

Fund Family:  State Treasury and The Vanguard Group®

Minimums:  To get started you can deposit $10, and the minimum subsequent contribution is also $10.

Maximum Contributions:  Currently, you can contribute up to $218,535 to your Louisiana 529 plan.  Of course, your total amount in the plan can be higher as your investments group.  529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits:  Good news for Louisiana residents - by investing in your state's 529 plan, you can deduct up to $2,400 on your state income taxes for single filer and $4,800 for married filers.  You also get the same benefit for federal income taxes.  Out-of-state participants still get the federal tax benefits.

Other Benefits:  For Louisiana residents, a matching grant applies.  The state will match up to 14% of deposits each year with Earnings Enhancements.  Factors include Federal Adjusted Gross Income of the Account Owner and the Category of Account

Residency:  START is open to all United States residents, not just those in Louisiana.

You can learn more about Louisiana’s 529 plan at the official website http://www.startsaving.la.gov/savings/index-fl.jsp.