529s Become More Flexible in 2018

There have been a number of changes brought to us by the 2018 Tax Law regulations. Some of them are not yet well known.

One of these changes is the increase in the flexibility of 529’s. Prior to 2018 the use of these funds tax-free was limited to paying qualified college expenses. Under the 2018 Federal tax regulations these funds may also be used for private school tuition (kindergarten to 12th grade) up to $10,000 per year.

The final detailed regulations are not yet complete and it is not yet known if 529 funds can be used for vocation, trade, or alternate school costs. If you have specific questions or need information on how to access or report for tax purposes, please give us a call or email. 

If you plan to send your kids to private school, the earlier you fund your 529, the more years you will have to build-up the value of tax free income. We are available to handle these types of investments as part of your portfolio. 

• By Richard St. John, Founder & President