2019 tax strategies – College Planning

Curious about College Planning...?

The smart way to go about it is to start early, save a little money each year and let the money grow. And if you have college costs in 2019, don’t forget to withdraw money attributed to education expenses before Dec 31st this year.

529 and Coverdell Education Savings Accounts (ESAs) plans: You do not get a federal tax deduction for contributions to 529 plans (some states allow for a deduction), but the investment in the plan grows tax free. No tax is due on money you take out if that money is applied toward qualified education expenses in the same year.

NOTE: Started in 2018, you can now use 529 monies for elementary and secondary school tuition!