(from the N.Y. Times) The recently proposed House tax reform bill has a provision that would allow elementary and high school expenses of up to $10,000 a year to become "qualified" expenses for 529 plans (vehicles to save money for college). Families would be allowed to pull $10,000 each year out of a 529 account for K-12 school tuition and avoid paying taxes on previous growth. Families could continue using the 529 to save for college. If a family were to deposit $200,000 into a 529 plan at their child's birth, at an annual growth rate of 6 percent, they could remove $10,000 a year to pay for grades K-12 and save more than $30,000 in taxes. They'd still have enough to pay for a private college in full if inflation is at 3 percent.
More at New York Times
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