School Bells will be ringing in only 6 weeks!
Parents, are you prepared to tackle the impending to-do lists associated with a new school year? Perhaps you are also emotionally preparing to say goodbye to a sizable tuition check!
Did you know: 529 Plans now cover K-12 expenses
As of January 1, 2018, 529 plans now allow distributions up to $10,000 per year for public, private, or religious K–12 schooling. 529 plans continue to provide tax-free distributions for college-related tuition. And, contributions into 529 plans continue to grow income tax free.
Maryland taxpayers continue to receive a maximum $2,500/year deduction each from their State adjusted gross income per beneficiary for contributions to the Maryland 529. Please note, you may not take this tax deduction if using another state's 529 plan!
Take advantage of this change:
If you are a family with young children that has budgeted for private school education, this 529 expansion may be a great way to save and accumulate tax free for those expenses.
Things to consider:
Decide how your family will prioritize savings for K-12 expenses with higher education needs.
RCS Financial Planning is a fee-only advisor and does not sell investment products. We do not receive commissions, kickbacks, or fees of any kind for recommending 529 Plans.