New Tax Bill ~ 529 Accounts
The recently passed (December 2017) tax bill contains a provision that expands the use of 529 accounts effective in 2018.
Prior to the new tax bill, 529 accounts acted as an investment vehicle to save and pay for college tuition within certain dollar limits and were exempt from state income tax. However with the new tax bill, the use of 529 accounts have been expanded to include saving for tuition for elementary and secondary schools including nonpublic private and religious schools.
The specific details regarding investments, number of accounts and tax saving details for 529 accounts vary. We recommended that if you are interested in finding out more about the expanded version of the 529 accounts, please contact your tax accountant who will advise you as to this account’s specific details and applicability to your current state/federal tax status.