The new tax law (Tax Cuts & Jobs Act) has drastically expanded the 529 college savings plan. So, what is a 529 college savings plan? The 529 college savings account was set up as a tax-advantaged investment account which allow families to invest and save for their children's higher education expenses. Most of these plans are sponsored by states and state agencies, however educational institutions can also sponsor a 529 plan.
Before the new tax law, 529 plans could only be used for eligible colleges and universities. But not with the Tax Cut & Jobs Act, federal rules allow 529 plans to cover qualifying expenses for private, public, and religious kindergarten through 12th grade.
If you aren't already using a 529 savings plan, now is a great time to start. Not only can it be used for qualified K-12 and college expenses, but it is better than using a general savings plan for tax benefits and market growth. Watch video below and see full article here: