The Hourglass Quiz
Written on August 29, 2019

The Hourglass Quiz

 

All of the following are potential benefits of 529 Education Plans to Illinois residents except:

    1. Investment earnings grow tax deferred.
    2. The new tax code allows payments up to $10,000 per student per year in K-12 tuition.
    3. Qualified distributions (e.g. tuition, housing) are federal income tax free.
    4. The account owner can change the beneficiary to a family member of the original beneficiary.
    5. Contributions to an Illinois plan are state tax deductible up to $10,00 (single) and $20,000 (married filing jointly).

 

 

Correct Answer:
(b) “At this time, it has not yet been determined whether and how the Illinois statute that establishes the plan may be modified to include this expanded definition.” Stay tuned!