N.C. Ups Deduction for 529 Plans

The North Carolina State Legislature voted to increase the amount 529 college savings plans participants can deduct for tax year 2007. The plan, which was named a “top choice” by Money magazine, is managed by Upromise. The law, which as been signed by Governor Mike Easley, allows married North Carolina couples contributing to the plan to deduct contributions up to $5,000, compared to $4,000 for 2006. Single contributors can deduct $2,500, compared to $2,000 a year ago. The plan offers 15 options from providers including Wachovia’s Evergreen Investments, Vanguard, J. &. W. Seligman and MetLife.