This article was originally published on ETFTrends.com.
By Brad Sherman via Iris.xyz
Are you saving for your child’s education with a 529 account?
If you are already contributing to a 529 plan, reduced deductions in the new 2018 tax law mean you may want to increase your contributions – or even create a second 529 account – to offset higher state taxes.
If you haven’t yet opened a 529 account, this year’s important changes in tax and 529 regulations have made 529 accounts an even more valuable option for parents of school-aged or college-aged children.
Here are the changes and why contributing to a 529 account is more important than ever:
K-12 Tuition is Now Covered by 529 Plans
529 plans were originally created to let you to save and invest for your child’s college education – while paying no federal tax on qualified withdrawals. The good news is that benefit has now been expanded: you’ll be able to withdraw up to $10,000 per year per student for elementary, middle, and high school tuition if your child attends or will attend a private or religious school.
Click here to read the full story on Iris.xyz.
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