With a major tax reform package now the law of the land, it’s time for parents to educate themselves about important changes that will affect the way they save for their kids’ futures.
According to a recent story from CNBC, it’s necessary to keep a couple of crucial details in mind:
Important to note: You can choose any state’s plan. There is no requirement that you invest in your home state’s 529 plan.
Families residing in states that have no income tax, that don’t offer a deduction for contributions, or that give a tax break regardless of whether investors choose the home state’s plan, all have good reasons to look elsewhere. So may families whose state offers a break on contributions, but has high plan fees.
If you’re using your 529 plan to cover private K-12 costs, take a second look at your asset allocation: A shorter time frame may call for less equity risk.
Click here to read the full story at CNBC.com.