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 on a mission to find better ways to explain complex concepts in increasingly simple and meaningful demonstrations. Everyone has a different level of interest in learning about investing – ranging from “I just want to know that I…Read More

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