State Plan

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: Louisiana changes the maximum each year on August 1. It is equal to five times the annual expense of attending the highest cost Louisiana university. 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. This is per beneficiary, so if you have two kids you can get twice as much. You also get federal income tax benefits as you do not pay income tax on your earnings. 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 for some accounts. 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.