Our office will be closed Thursday, November 26th and Friday, November 27th in observance of Thanksgiving!

Get schooled on college savings plans

Helping ensure that you stay current on 529 plan withdrawal rules

Read time: 1 minute

The new budget bill passed by Congress late last year impacted college savings plans. To date, changes made concentrate on plan withdrawals only. While more updates could come our way, the following are key changes that are important to understand.

  • Withdrawals of up to $10,000 during one’s lifetime can be used to repay student loans of an account beneficiary (or their siblings) without tax or penalty, making it a qualified expense.

  • Withdrawals can be made to pay for an apprenticeship program once approved.

  • The tuition and fees deduction has been retroactively restored from 2018-2020.

  • Children with higher interest, dividends or capital gain income are retroactively taxed at their parent’s tax rates rather than the potentially higher trust tax rates.

Be sure you understand the rules before making any withdrawals.

Have questions on 529s?

Contact us today! Simply click the GET IN TOUCH button and complete the brief form or give us a call. We are here to help.

Get in Touch