The Hourglass Quiz
All of the following are potential benefits of 529 Education Plans to Illinois residents except:
- Investment earnings grow tax deferred.
- The new tax code allows payments up to $10,000 per student per year in K-12 tuition.
- Qualified distributions (e.g. tuition, housing) are federal income tax free.
- The account owner can change the beneficiary to a family member of the original beneficiary.
- Contributions to an Illinois plan are state tax deductible up to $10,00 (single) and $20,000 (married filing jointly).
(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!