Expanded Use of 529 Funds

January 10, 2018  | By Kevin Smith

Expanded Use of 529 Funds

Beginning on January 1, 2018, 529 account owners may take tax-free withdrawals up to $10,000 annually from their accounts for tuition expenses at public, private, or religious schools. This provision will apply to elementary, middle, and high schools.

Financial planning implications:

  • Families with young kids – if your kids are in K-12 schools that require out-of-pocket tuition, you can now use the 529 account to save up for future K-12 expenses with the tax-free growth and withdrawal advantages previously only allowed for college.
  • Families with college-age kids – no change
  • Grandparents – if you want to help with your grand children’s education, the 529 has just become a more versatile financial tool. Your 529 contributions may be used to expand their K-12 schooling options.
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Kevin X. Smith, CFA
512.467.2003   |  [email protected]

Kevin is responsible for advising clients for whom he is the lead financial advisor. He also manages the operations and development of the firm, and oversees all of the investments of Austin Wealth Management clients. Kevin is on a mission…Read More

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