Are there tax advantages to a START account?

Earnings on START accounts are tax deferred until withdrawn. If the funds are used to pay Qualified Higher Education Expenses, the earnings are exempt from both state and federal taxes. Deposits to START accounts are deductible from reported Louisiana income, up to $2,400 per year, per beneficiary. Unused portions may be carried forward to subsequent tax years. Married couples filing jointly may deduct deposits to START accounts from Louisiana State Taxable Income up to a maximum of $4,800 per year, per beneficiary, and any unused portion may be carried forward to subsequent tax years. An account owner of a Category VI account may deduct twice the amount deposited per account per taxable year, up to $2,400 in donations. If the Category VI account owner does not use the full $4,800 exemption in any tax year, any unused exemption may be rolled forward to be used in future tax years.