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In California, contributions to a 529 plan are not tax-deductible at the state level. However, you still have other options to save for your children's college education while enjoying some tax benefits: 1. Coverdell Education Savings Account (ESA): You can contribute up to $2,000 per child per year to a Coverdell ESA. Although the contributions are not tax-deductible, the earnings grow tax-free, and qualified withdrawals for education expenses are also tax-free. Note that there are income limits for contributing to a Coverdell ESA. 2. Roth IRA: While traditionally used for retirement savings, a Roth IRA can also be an option for college savings. Contributions to a Roth IRA are made with after-tax dollars, but earnings grow tax-free, and qualified withdrawals are tax-free. You can withdraw contributions at any time without taxes or penalties, but withdrawing earnings before age 59½ for non-qualified expenses may result in taxes and penalties. There are also income limits for contributing to a Roth IRA. 3. UGMA/UTMA Custodial Accounts: These accounts are established under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) and allow you to save and invest on behalf of a minor. The account is owned by the child, and any earnings are taxed at the child's tax rate, which may be lower than the parent's rate. However, it's essential to consider that UGMA/UTMA accounts could impact financial aid eligibility, as they are considered the child's assets. While each of these options comes with potential tax benefits, it's important to weigh the pros and cons and determine which option is best suited for your family's unique financial situation. You may wish to consult a tax professional or financial planner to help you make an informed decision.