Before long, school bells will be ringing again. If you’ve set up Section 529 college savings plans for your kids or grandkids, you know these plans bring federal (and possibly state) tax advantages. For example, qualified withdrawals are free from federal income tax, subject to limitations. But 529 accounts aren’t just for college. The funds can generally also be used to pay for K-12 tuition costs at a public, private or religious school, or to purchase required materials for a beneficiary to be part of a qualified apprenticeship program. Eligible withdrawals can also be used to pay a beneficiary’s college loans, up to $10,000, once in a lifetime. Questions? Contact us.
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