Saving for college can be a daunting task for any family. Fortunately, there are several tax-advantaged savings vehicles available to help like Section 529 plans. 529 college savings plans offer tax-free growth, donor control, and hassle-free administration. Owners of 529 plans benefit from tax-free growth by using the plan’s funds for qualified education expenses such as tuition, fees, books, and room and board. Today’s episode shares two ways that the SECURE Act has enhanced the benefits of 529 college savings plans.

Show Notes:

The following are important footnotes from this episode:

1 Please note that the state of California has not adopted this federal change under the TCJA. Using 529 plan funds for this purpose will result in California income tax and a 2.5% penalty on the earnings portion of the withdrawal.

2 It’s important to consult your CPA to understand all tax implications and potential penalties related to the use of 529 plan funds.