Does the change in the new tax law affecting 529 plans allow for me to use $10,000 per student for elementary school tuition, or is it $10,000 per household? I have two children in private school and 529 plans for each.
Starting in 2018, 529 plans can distribute up to $10,000 per year per designated beneficiary for public, private, or religious elementary or secondary school. The limitation is on a per-student basis, even if multiple accounts name the same beneficiary. Pennsylvania follows the same rules as the federal government for K-12 education. Each state may have different regulations or pass new laws to incorporate these changes.
For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.
Answered by: Nancy G. Montanye, CPA, is a sole practitioner in Williamsport, Pa.