the KFORD group logo

 

8620 North New Braunfels Suite 300, San Antonio, TX 78217

 

Phone: 210-340-8351

Fax:     210-340-8359 

 

Website: theKFORDgroup.com

May 2018

529 Plans Expanded

Insights and Tips

529 Plans Expanded

Another change contained in the recent tax bill is the expansion of what constitutes a qualified withdrawal from a 529 plan for education expenses. Previously designed for higher education only, a 529 plan now allows up to $10,000 in tax-advantaged withdrawals per year per beneficiary for qualified grade school (if your state allows) and high school education expenses.

Tax Deferral

While you can’t deduct contributions made to a 529 plan on your federal tax return, potential earnings accumulate on a tax-deferred basis. The account owner controls distributions, which incur a tax penalty and income taxes if taken for nonqualified events.

Estate Advantage

A 529 is also a nice estate planning tool. That’s because you can make a single-year contribution per person, per beneficiary, of $75,000, free of federal gift tax. You can’t make a gift to the same beneficiary for the next four years if you do this.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.