529 Savings Plans Offer Exciting New Options for Christian Schools
The recent tax reform law created a great opportunity for Christian schools and families. The Tax Cuts and Jobs Act was signed into law December 22, 2017. In a significant step forward that ACSI strongly supported and promoted, the law expanded 529 savings plans so that they now allow savings for K–12 tuition expenses. The maximum distribution for K–12 tuition is $10,000 per year per child for expenses incurred beginning January 1, 2018. This means current account owners may begin using these funds immediately for K–12 tuition! Read more.
529 Fact Sheet—Using 529 Savings Plans for K-12 Tuition, a very helpful resource provided by EdChoice, ExcelinEd, and American Federation for Children. Updated as of April 3, 2018, this resource includes a current list of 22 states whose laws align with federal law. Parents in those states may use their 529 savings plans for elementary/secondary tuition and take advantage of whatever state tax benefits are available in their states.
An Introduction to 529 Plans, Office of Investor Education and Advocacy, U.S. Securities and Exchange Commission
The College Savings Plan Network—CSPN is an affiliate of the National Association of State Treasurers
529 Comparisons by State from SavingforCollege.com
Listing of State 529 Plans from NerdWallet.com
- Brookings Institute—Detail of State Tax Benefits of 529 Plans
Articles on 529 Plans
States Assessing Impact of Federal 529 Change—CAPE Outlook, February 2018
- Christian Parents and Schools Have 529 Reasons to Like New Tax Law—Christianity Today interview with ACSI, February 16, 2018
- Improved and Expanded 529 Savings Plans Create More Opportunities for Families—The Heritage Foundation
- The 529 Plan Change That Could Help Families Save on Education and Taxes—Forbes magazine
- 529 College-Savings Plans Are Even Hotter After Tax Overhaul—Wall Street Journal
- The Tax Law's Biggest Education Change Is on Hold in Several States—Money Magazine
- Congress Changed 529 College Savings Plans, And Now States Are Nervous—nprEd
- ICYMI: Sen. Cruz: Congress' Tax Reform Bill is a Major Victory for Working Men and Women and American Families—Senator Ted Cruz (R-Texas) announces successful passage of his Student Opportunity Amendment to expand 529 savings accounts to include K-12 tuition. (12/20/2016)
- Vice President Mike Pence votes to break the tie on the Cruz 529 savings account amendment—
- Senator Ted Cruz (R-Texas) comments on introducing the Student Opportunity Amendment expanding 529 savings accounts to include K-12 tuition.
- Coalition letter thanking Sen. Cruz for introducing the Student Opportunity Amendment. ACSI is one of 70 groups to sign the letter. (12/8/2017)
- What's a Few Billion between Friends? The Fuzzy Numbers on 529s for K–12 Tuition—Avrohom Weinstock, Associate Director of Education Affairs at Agudath Israel of America, corrects the record on the impact of 529 savings upon state tax receipts. (1/22/2018)
- Changes to Education With Tax Reform—Kathy Pickering, Executive Director of The Tax Institute, discusses multiple education-related tax law changes including higher education and the 529 savings plan expansion at HRBlock.com. (12/27/2017)