What’s New About 529 Plans?

The new twist to these education savings plans, thanks to the 2017 tax legislation.

Designed to help parents and grandparents save for their children’s or grandchildren’s college or post-secondary education expenses with tax advantages, 529 Plans now have a new twist.

Previously, expenses covered under the plan included tuition, room and board, computer software or any other equipment needed for the student. Withdrawals used for these expenses were and still are tax free.

So, what’s the new twist?

Parents and grandparents now can use the savings from a 529 account also to pay for tuition at a K-12 private or religious school.  That can be of great advantage to many families. 

HOWEVER, there is an important watch out –– withdrawals for students who are of pre-college-age are limited to $10,000 per year per student.

The risk, as such, is that families may deplete their 529 Plan(s) by the time the student goes off to college.

It is critical that parents and grandparents think ahead and closely monitor the amount in each 529 Plan to pace withdrawals in such manner that necessary funds will be available for as many years as needed.  And if not, the time to figure out another way to help cover education expenses is before those monies are needed.

Let us know if we can help.  Our Lenox professionals are experts in education funding.

If you’re ready to discuss financial planning that will allow you to Fund a Life You Love®, we’d love to tell you more.  Let’s talk.  It’s your tomorrow.

Call us for a complimentary 1 hour review.  Call 513.618.7080 or contact us here to Fund a Life You Love.



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