Did you know you can now use 529 Savings Plans
to pay for elementary and secondary education tuition ?
The 2017 Federal tax reform law has created a great opportunity by expanding the provisions of the 529 tax-advantaged college savings plan. 529 plans now also allow savings for K-12 tuition expenses. The maximum distribution for K-12 tuition is $10,000 per year per child for expenses incurred beginning January 1, 2018.
Although this tax reform law allows for eligible K-12 tuition expenses to be paid with federal tax-free 529 Plan earnings, please consult your advisor as to how your state treats this from a state tax perspective.
Also please note that the Maryland 529 plan does not issue checks directly to the schools, but only to the account holders, who in turn, pay the schools. The account holder is then responsible for maintaining the 529 Plan payment records for their tax reporting purposes.
If you have any questions, please contact Regine Harding, accounts receivable specialist at AACS. She can be reached at 410 846-3510 or RHarding@aacsonline.org.
NOTE: Annapolis Area Christian School's Central Office is located at the Upper School on the second floor of the Kilby Athletic Center. Central Office hours are 8 a.m. to 4:00 p.m. during the school year and 9 a.m. to 1 p.m. during the summer.
