I don’t know about California, but in some states you can basically run money through a 529 plan and save state income taxes not on the return on the 529 but on your earned income. There is a dollar cap on how much you can dump into a 529 of something like $70k and the 529 needs to be created several years before you begin withdrawing. Basically, 529’s were created and are intended for long-term college savings - not people in your situation. We worked the merit aid angle but I failed to have a heart-to-hear with D about how winnning big merit aid should influence her ultimate college selection. So if your child is academically strong enough to be awarded significant merit aid, discuss with them in advance how $25k or $30k in merit aid should influence their decision. D had to choose between Notre Dame at $60k net cost and GW, Kenyon or Case Western at $30k net cost. She chose Notre Dame - come April 1st it was a bit late for me to set down ground rules.