529 plans offer two tax-advantaged education funding options
Wolff and Taylor October 17, 2018 No Comments Share
Small Business17 Oct
Section 529 plans are a popular education-funding tool because of tax and other benefits. Two types are available: 1) prepaid tuition plans, and 2) savings plans. A prepaid tuition plan guarantees tuition regardless of its cost when the child attends the school. A savings plan can fund expenses beyond college tuition on a tax-free basis. The TCJA expands the definition of qualified expenses to generally include elementary and secondary school tuition. However, tax-free distributions used for such tuition are limited to $10,000 per year.
Previous Article
2023 – 02/07 – Answers to your questions about 2023 limits on individual taxes