Originally Posted by Anonymous
Just to be clear, the money you put into a qualified 529 plan is after tax dollars, the only thing that does not get taxed is the gains on the investments, but only if they money is used for qualified educational expenses. Since we are talking about 9th graders here, I'm not too sure that investing 10k a year at this point is going to have huge tax benefits. However, if you have been investing in one since your children were young, then the tax benefits can be a lot greater.

That is incorrect. If you invest in NY's 529, you get to deduct it from your state income taxes, up to $10,000. It' saves you $700 a year in state taxes if you max out.