Did You Know: 529 Plans Are Expanded with the Tax Cuts and Jobs Act

Did you know:

Sec. 529 plans were expanded to include K-12 schools up to $10,000 per year?

Now that you know – here’s what it means!

If you have cash available to pre-fund up to $75,000 per person immediately into a Sec. 529 plan, there are scenarios that could pay for K-12 private school tax free and still have the main amount available for college.

And here are the details:

This new provision gives taxpayers more flexibility by allowing funds in a 529 account to be used to pay for tuition expenses in connection with enrollment in an elementary or secondary public, private or religious school (excluding home schooling) tax-free at the federal level. State taxes may still apply, so account owners should check with their 529 plan administrator to determine whom the withdrawal request should be made payable (account owner, educational institution, etc.).

Need help understanding the details surrounding your 529 plan? Start Here.

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CATEGORIES: Featured | Tax, Audit & Accounting
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