Mar 05, 2018

Tax Planning to Save and Pay for College

By Maureen Renzi, vice president – communications

MoneyLife100Pennsylvania is above average, but that’s not a good thing. According to College Calc, the average in-state tuition in Pennsylvania is $20,527, which is $6,941 higher than the national average.

Money and Graduation CapSaving for college can be daunting. When mapping out a savings strategy, understanding the benefits and restrictions of tax-deferred college savings plans, how financial aid packages are affected by savings plans, and the penalties for early withdrawal are all issues to be considered. Plus, the Tax Cuts and Jobs Act of 2017 changed some of the rules for the popular 529 college savings funds that could affect your plans. CPAs field many questions in this area, and here is a collection of some of their tips on college savings funds.

If you still have unanswered financial questions about saving for college, Pennsylvania CPAs have provided additional resources in the personal finance section of PICPA’s website.

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Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of PICPA officers or members. The information contained in herein does not constitute accounting, legal, or professional advice. For professional advice, please engage or consult a qualified professional.