Check Before Using Your 529 For Pre-College Education


MoneyTips

In 1996, the Small Business Job Protection Act created 529 savings plans: state-administered programs designed to help parents save for their children’s future college costs. In a 529 plan, deposited funds are allowed to grow free of federal and state taxes and growth remains tax-free as long as the money is used for qualified educational expenses. There are no eligibility limits on age or income, and many states offer deductions or tax credits on 529 plan contributions.

These perks make 529 plans extremely popular vehicles for college savings – and thanks to a provision in the recently passed Tax Cuts and Jobs Act, 529 plan funds may be applied on up to $10,000 per year of kindergarten through 12th grade educational expenses as well.

Should you take the opportunity to fund primary education with a 529 plan? Perhaps, but experts urge caution for several different …



Source link

Next Post
ADVERTISEMENT

HOT Updates