© Tierney @adobestock.com
One item, in particular, that I like with the pending tax reform is how the 529 plan will be treated. It expands the use to elementary and secondary schools at a max of $10,000 per beneficiary per year for qualifying expenses. This from the NYT:
Buried in Section 1202 of the tax bill are a number of proposals to consolidate and simplify various tax breaks for education savings. Part of the section in effect would neuter something called a Coverdell account, which families have used for years to save for both private school and college.
But then comes the big change: Elementary and high school expenses of up to $10,000 per year would become “qualified” expenses for 529 plans. Translation? You could pull $10,000 each year out of your 529 account for private school and avoid paying taxes on any previous growth. There are no income limits on who can use 529 plans, and you would be able to keep right on saving for college as well.
Read more here.
