Louisiana 529 Plan

From Bogleheads

Jump to: navigation, search

Louisiana 529 Plan:

  • Open to Residents
  • Not open to non-residents

Program match on contributions: The state provides an earnings enhancement equal to 2% to 14% (depending on income) of a Louisiana participant's contributions when the account is used for qualifying expenses.

State tax deduction or credit for contributions: Contributions to the Louisiana 529 plan of up to $2,400 per account per year for an individual taxpayer, and $4,800 per beneficiary per year for married taxpayers filing jointly, are deductible in computing Louisiana taxable income. Any unused cap amount with an active account may be carried forward to increase the cap in subsequent tax years. Double deductions of up to $4,800 per year ($9,600 married file jointly) may be claimed for an account opened for an eligible needy, non-related beneficiary. Contribution deadline is December 31.

State tax recapture provisions:

The principal portion of nonqualified withdrawals from this plan are included in Louisiana taxable income to the extent of prior Louisiana tax deductions. Rollovers are not subject to recapture.

Age-based investment options: The Age-Based Option contains four portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary’s age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options: Select between the Louisiana Principal Protection Option (100% invested in the state-managed Fixed Earnings Fund), the Total Equity Option (100% invested in the Vanguard Total Stock Market Index Fund), the Equity Plus International Option (80% in Vanguard Total Stock Market Index Fund and 20% in Vanguard Total International Stock Index Fund), and three additional options offering a blend of the Fixed Earnings Fund and the Vanguard Total Stock Market Index Fund (Balanced Option, Equity-Plus Option, and Principal Preservation-Plus Option).

Expenses: 0.06% - 0.32%; None for Fixed Earnings Fund option

See also

529 Plan Pages

Links

How to Cite

You can link to this page from the Bogleheads Forum by copying and pasting the following text into your forum posting:

Please see [url=http://www.bogleheads.org/wiki/Louisiana_529_Plan]Louisiana 529 Plan[/url] on the [url=http://www.bogleheads.org/wiki/Main_Page]Bogleheads Wiki[/url].
Notice something that needs correcting? Notify a wiki editor or become a wiki editor and fix it yourself!


529 Plans
Alabama • Alaska • Arizona • Arkansas • Arkansas Ishares • California • Colorado • Connecticut • Delaware • District of Columbia • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • West Virginia (SMART 529) • Wisconsin • Wyoming
Retrieved from "http://www.bogleheads.org/wiki/Louisiana_529_Plan"
Personal tools