Here are the quick facts on 529 plan tax benefits:

Contributions are never tax-deductible for Federal taxes.

Contributions are sometimes tax-deductible for state taxes, it depends on the state you're in. 

Among states that offer tax benefits, some require you to use their own 529 plans while others do not.

Your 529 plan savings grow free from any future taxes when you use the money for qualified educational expenses at eligible schools.

"Qualified educational expenses at eligible schools" include tuition, room and board (if a student is living off-campus, the permitted amount you can pay with a 529 plan is often disclosed by the school), textbooks and supplies required for being a student.

Check your local taxes, if your state offers a tax break.

Some places, including New York City, permit the same tax deduction that exists at the state level on your local taxes.

Contributions to 529 plans count as gifts for Federal tax purposes.

Learn more about how much you can gift in How do annual gift tax limits work?

529 plans offer a special option to accelerate 5 years of annual gifting.

529 plans offer a special provision that allows you contribute 5 times the annual exemption at once, effectively "accelerating" 5 years of contributions to day one.

How to protect your kids’ college savings

You’ve taken the time to research college savings and make smart choices. But even the best savings strategy depends on one key factor—your ability to keep contributing. What if an illness, injury, or even premature death prevented you from providing for your family?

Life and disability insurance help ensure that your financial plans stay on track, even when life takes an unexpected turn.

Get a life insurance quote or a disability insurance quote to ensure that a health crisis would not become a financial crisis.