Why you should start a 529 plan for your kid

New regulations expanded 529 plans for K-12

Rod Meloni explains a 529 plan.

If you want to keep educating your kids, a 529 plan is a fantastic option.

A 529 plan is a higher education savings vehicle used with tax deferrred investment.

You might now know this, but the 2018 tax law expanded 529 plans so now it can apply to primary and secondary education at public, private or religious institutions.

You can now take out u to $10,000 to pay for private school tuition, books in K-12. Assets and plans can be transferred to family once the receiver doesn’t need the money anymore.

This plan was also expanded to special needs students under the Able Act. This allows for spending to not inferesocial security, medicaid or private insurance

About the Author:

Rod Meloni is an Emmy Award-winning Business Editor on Local 4 News and a Certified Financial Planner™ Professional.