For Parents of School-Aged Children, 529s Deserve a Look Now More Than Ever
The Tax Cuts and Jobs Act, which became effective at the beginning of this year, permits parents to withdraw from a 529 plan to pay for up to $10,000 in tuition expenses. This change in federal law applies to tuition costs for public, private or parochial schools (but not homeschooling).
This is a potentially huge benefit for parents, because they can now use tax-free dollars to pay not only college costs, but elementary or secondary education fees as well... maybe. Not all states have signed off on allowing the (state-level) tax credits.
As we enter the home stretch of the school year, take the time to consult with an accountant or financial planner as to whether this strategy will work for your family.