On December 22, 2017, The Tax Cuts and Jobs Act was signed into law. The information in this article predates the tax reform legislation and may not apply to tax returns starting in the 2018 tax year. You may wish to speak to your tax advisor about the latest tax law. This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.
Qualified Tuition Plans offer a unique opportunity for families to save in a tax-advantaged way for their children’s college education. Although contributions to these plans are not tax-deductible, the plan earnings accrue tax-deferred and are tax-free if used for tuition and other qualified expenses. The only limitation on contributions is the estimated cost of the future education and gift tax considerations by the donor.
To maximize the benefit, the contributions should be made as soon as possible to maximize the account earnings before the funds are needed for the education.
To maximize the benefit, the contributions should be made as soon as possible to maximize the account earnings before the funds are needed for the education.