Louisiana 529 Plan Rules And College Savings Options

Louisiana 529 Plans At A Glance

Louisiana 529 Tax Deduction And Tax Rules

Louisiana lets account owners exclude up to $2,400 a year in START deposits per account on a single return, or up to $4,800 per beneficiary on a joint return, and any amount above the limit rolls forward to future years (La. R.S. 17:3095). The deduction belongs to the account owner, so a grandparent who wants it should open their own START account for the grandchild (START Saving Program). Our state-by-state 529 tax deduction table shows how that compares with neighboring states.

Either the account owner or the beneficiary must be a Louisiana resident when the account opens (START Saving Program). START K12 deposits get a smaller deduction of up to $1,200 on a single return or $2,400 on a joint return (START Saving Program), and our list of qualified 529 plan expenses covers what regular START money can pay for.

Louisiana doesn't make deposits sit in START for a set period before paying a qualified expense. The program's FAQ says funds may be disbursed for qualified higher education expenses "at any time after being deposited," and the 12-month rule only limits refunds when an account is closed within a year of opening (START Saving Program). That means Louisiana families paying tuition out of pocket can route up to $2,400 per account ($4,800 joint) through START first and still claim the deduction, a move states like Wisconsin and Montana have blocked, as our breakdown of 529 plan churning and withdrawal limits explains.

Federal law lets a 529 that's been open at least 15 years roll up to $35,000 into the beneficiary's Roth IRA, but START's rollover form says earnings enhancements can't go to the Roth IRA and offers no opinion on state tax treatment (START Saving Program). Louisiana law declares refunded deposits that were deducted as income (La. R.S. 17:3098), so ask a tax preparer before rolling money out. Read our 529-to-Roth IRA rollover rules before you move leftover money.

Louisiana's K-12 rules don't match the federal ones. The state law that let regular START accounts pay K-12 tuition applied to 2020 disbursements (La. R.S. 17:3095), and the START K12 account pays only tuition at Louisiana schools, capped at $10,000 a year (START Saving Program), well short of the new $20,000 federal limit. Our breakdown of the 2026 529 plan expansion covers what changed federally.

How Louisiana's 529 Plan Ranks

Louisiana ranks 25th of the 50 state plans in our best 529 plans rankings, which include Washington, D.C., with a 63.8% net return on investment. Our Net ROI score models $100 a month for 10 years at a 5% annual return, subtracts plan fees, and reinvests the value of the state tax break each year. START's 2 basis point fee is among the lowest on the list, and its 3% tax break is what keeps it in the middle.

Don't read this table as a reason to switch plans. Each state's score assumes a taxpayer in that state using its own plan, so a Louisiana resident who moves to another plan gives up the START deduction and the state match, which leaves them worse off. The full rankings table lists all 50 state plans.

The gap with the top of the list comes down to the tax break. START already charges almost nothing, while Indiana's 20% tax credit is what puts it at #1, so a larger deduction is the lever that would move Louisiana families up. If that matters to you, share these numbers with your state legislators, and use our 529 plan tax deductions by state table to show how other states reward savers.

Should Louisiana Residents Use START?

Yes, for nearly every Louisiana family. START is the only plan that gets the Louisiana deduction, and eligible account owners also earn a state match of 14% of deposits for incomes under $30,000, stepping down to 2% for incomes of $100,000 or more (START Saving Program). Our 529 plan tax deductions by state table shows how few states pair a deduction with a match.

The catch is portability. If your family leaves Louisiana, you can roll START to another state's plan, but all earnings enhancements and the interest on them are forfeited (START Saving Program), and our explainer on 529 plan rollovers and transfers covers the federal limits. Families outside Louisiana generally can't open START unless the beneficiary lives in the state, so they should check where to open a 529 plan in their own state.

Four years at an in-state Louisiana public university runs about $96,800 on campus, so the average START balance of about $24,400 covers roughly one year. Our Louisiana college costs and financial aid breakdown lists costs by school, and our 529 savings benchmarks by age show what to aim for.

Louisiana 529 Plan Details

START is run by the Louisiana Office of Student Financial Assistance under the Louisiana Tuition Trust Authority, with the State Treasurer managing the Principal Protection Fund and Vanguard managing the variable funds (START disclosure booklet). As of June 30, 2026, Louisiana's two programs held $2.06 billion across 87,827 open accounts, ranking 38th among the states in 529 assets (The 529 Network). Our 529 plan and college savings statistics show how that compares nationally.

Other Louisiana College Savings Programs

Upromise. Upromise lets you earn money for your START account through rebates and rewards on everyday spending, and the Upromise credit card sends cash back straight into your child's 529 plan (Upromise). You can link a START account to your Upromise profile, so the rewards stack on top of Louisiana's state tax deduction.

START Earnings Enhancements. Louisiana adds a state match to deposits, set by income: 14% under $30,000, 12% from $30,000 to $44,999, 9% from $45,000 to $59,999, 6% from $60,000 to $74,999, 4% from $75,000 to $99,999, and 2% at $100,000 or more (START Saving Program). Parents, grandparents, and other family members who are Louisiana residents qualify for the tiered rates, and the match can only be spent on qualified expenses. Our Louisiana financial aid page lists the state's grants.

Louisiana ABLE. Louisiana residents whose disability began before age 46 can save in Louisiana's ABLE account, which the Office of Student Financial Assistance runs alongside START (Louisiana ABLE). ABLE savings can protect eligibility for SSI and Medicaid, which our 529 plan overview compares with regular college savings.

Leftover money. Families with money left after college can change the beneficiary to a family member without losing the state match, pay down up to $10,000 of student loans, or roll to a Roth IRA without the match. Our list of what to do with leftover 529 money covers each option, and Louisiana graduates in teaching or health care should also check Louisiana student loan forgiveness programs.

Frequently Asked Questions

Related Louisiana Resources

How We Sourced This Data

Plan details on this page come from the plan and the state: the START Saving Program's FAQs, START K12 pages and FAQs, disclosure booklet (April 15, 2020) and June 2024 supplement, March 31, 2026 investment performance report, Roth IRA rollover and student loan disbursement forms, The 529 Network 529 plan data as of June 30, 2026, and Louisiana ABLE. Tax rules come from La. R.S. 17:3095 and 17:3098 and the START FAQs. The college cost figure comes from our Louisiana financial aid page, which draws on institutional cost pages and NCES IPEDS data. Read more about how we fact-check and update content.

Page refreshed annually in September, after START publishes its updated fee schedule, and reviewed in January for tax season. Last full refresh: September 24, 2026.