University of Virginia

529 Plan Changes for 2018

It’s official. The tax legislation passed late in 2017 will allow for K-12 tuition costs up to $10,000 per year, per child. But before you run out and start making withdrawals, there are some important caveats, including one mistake that could cost you dearly.

As of February 2018, you could face recapture of deductions you claimed on your Virginia tax return for 529 plan contributions if your withdrawal is used for the new K-12 expenses.

Please read our recent newsletter for the full details of the changes, and if you have any questions, pleaseĀ drop us a note.