529 Qs - parents as beneficiaries?

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ephu437
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Joined: Tue Oct 09, 2007 7:24 am

529 Qs - parents as beneficiaries?

Post by ephu437 » Sun Oct 07, 2018 8:10 pm

Thanks to the responses to my previous threads, I've moved several steps forward in my 529 planning. To recap the relevant facts - I live in Maryland, have several children (oldest is in middle school), my wife and I file jointly at a marginal rate in the 30% range (and get hit with AMT). Our children are/will be in private school for elementary through high school, and those tuition payments are a bigger concern than paying for college.

With the 2017 tax law, we want to take advantage of 529s for K-12 tuition, where the big opportunity is the ability to deduct contributions to the MD 529 plan on the state return.

My understanding is that we can deduct $5000 per beneficiary per year ($2500 for each of my wife and myself), so the easy play is to take $5000 per kid from what we already earmark for tuition and run it through a 529 account first.

The angle I'm currently investigating is whether we can get a larger deduction by also opening 529 accounts with my wife and myself as beneficiaries, and then use that money for our children's education instead of our own. I haven't found the answer yet.

Cheers, F

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