New tax legislation includes changes to Section 529 college savings plans
The tax plan signed into law on December 22, 2017 includes provisions related to 529 college savings plans. Provisions of the tax law include the expansion of qualified education expenses in Section 529 of the Internal Revenue Code to include expenses for tuition for K-12 up to $10,000 per year per student. The tax treatment of such withdrawals will be determined by the taxpayer’s state of residence. The tax law also allows for 529 plan accounts balances to be rolled over to ABLE accounts without penalty under specified circumstances. We encourage you to consult a qualified tax advisor about your personal situation.
Details associated with this new legislation are currently being reviewed, and we will share more specific information as soon as it becomes available. Please check back periodically for updates.