529 Education Savings Accounts Plan Changes

by | Aug 21, 2018 | Tax, Tax Savings Strategies

K-12 education – 2018 changes allows distributions from 529 education savings account plans to be used to pay up to a total of $10,000 of tuition per beneficiary each year at an elementary or secondary (k-12) public, private or religious school of your choice.
Tuition refunds – A new special rule for a beneficiary of a 529 education savings account plan, who receives a refund of tuition or other qualified education expenses. This can occur when a student drops a class mid-semester. If the beneficiary re contributes the refund to within 60 days, the refund is tax-free.  Re-contributions would not count against the plan’s contribution limit.
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