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Sandusky, Ohio Office
422 West Market Street
Sandusky, OH 44870
419-625-4942
866-293-2727
FAX: 419-625-7120
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Norwalk, Ohio Office
257 Benedict Avenue, Building D
Norwalk, OH 44857
419-668-2552
800-860-0152
FAX: 419-663-3637
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Monday–Friday: 8 am – 5 pm
   
Fridays from May 1 through
Labor Day we close at noon.

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New 529 Plan Opportunities 

January 26, 2018
Payne, Nickles & Company

The Tax Cuts and Jobs Act (TCJA) has made some changes to qualified tuition programs (“QTPs,” also commonly known as “529 plans”) that you might be interested in. These changes take effect for 529 plan distributions after 2017.
 

The TCJA provides that qualified higher education expenses now include expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Thus, tax-free distributions from 529 plans can now be received by beneficiaries who pay these expenses, effective for distributions from 529 plans after 2017.
 

There is a limit to how much of a distribution can be taken from a 529 plan for these expenses. The amount of cash distributions from all 529 plans per single beneficiary during any tax year can't, when combined, include more than $10,000 for elementary school and secondary school tuition incurred during the tax year.
 

In Ohio, if you contribute to an Ohio plan, beginning in 2018, the maximum deduction available will increase from $2,000 to $4,000 per beneficiary per year. Any contributions in excess of $4,000 could be carried forward and are deductible in future years.
 

To take advantage of this opportunity you can go to www.collegeadvantage.com, call PN Financial at 419-668-2552 and ask for Billy Cunningham, or contact your broker for assistance.
 

To ask specific questions about your situation please call one of the accounting professionals at Payne, Nickles & Company.



419-625-4942     419-668-2552
Sandusky                             Norwalk
 


  

Treasury Circular 230 Disclosure

Unless expressly stated otherwise, any federal tax advice contained in this communication is not intended or written to be used, and cannot be used or relied upon, for the purpose of avoiding penalties under the Internal Revenue Code, or for promoting, marketing, or recommending any transaction or matter addressed herein.