S-Corporations and 529 Plans

September 28th, 2007 | Category: Income Taxes

Q: Can I set up a 529 college savings plan for my child using my S-corporation? Rob, MN A: These two tax items have nothing to do with one another. Setting up a 529 plan is something an individual sets up. There is no “earned income” requirement like IRAs have, so you can feel free to use S-corp

profits to fund a 529 plan. However, the 529 plan is not set up by the commerce, but by individuals. In no case is a 529 plan contribution deductible as an ordinary and essential trade expense.

Original post by Ryan Ellis

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