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Today’s tip will cover “What are some of the benefits of 529 education saving accounts and the recent tax overhaul?”

Many people will benefit from a change that allows assets in 529 plans to be used to pay for elementary and high school tuition. In addition, 529 account assets can now be transferred to so-called 529 ABLE accounts. These accounts offer tax-favored savings for people with disabilities without affecting eligibility for benefits such as Medicaid.

There are several other factors to consider if this is the best way for you to save for education planning. Feel free to contact me to see if a 529 Plan is right for you and your family.

For more information about 529 plans visit the IRS website at the following link:

https://www.irs.gov/newsroom/529-plans-questions-and-answers

For more information about the ABLE Act visi the IRS website at the following link:

https://www.irs.gov/government-entities/federal-state-local-governments/tax-benefit-for-disability-irc-section-529a

For your specific tax related questions consult with your tax advisor.

Catherine Magaña is a CFP® or CERTIFIED FINANCIAL PLANNER™ in Carlsbad California. If you would like to set up a time to discuss your financial goals she can be reached at 760-692-5700, info@savvyup.com or private message.

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