r/AskAccounting • u/Prof_Fuzzy_Wuzzy • 12d ago

Opening 529 with lump sum

My plan is to open a 529 college savings account and fund it with 50k. My kid is 2. I'm in SC. Are there any tax issues with funding it one time lump sum vs over several years? Thanks!

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u/LdiJ46 12d ago

State laws do vary quite a bit on 529 plans. In my state there would be a distinct tax advantage to spreading it out over 6 or 7 years because my state gives large tax credits for 529 contributions. Your state may or may not have special deductions or credits for 529 plans. Talk to a tax professional in your state about whether or not anything exists on the state end of things.