Trump Accounts have a 'tax-advantaged' alternative, CFP says — yet few families are capitalizing
529 plans are evolving to offer more than just college savings, providing families with tax advantages for future education costs. Recent legislative proposals aim to allow unused college savings to be used for first-time home purchases. This change is seen as a potential solution to help families afford homes amidst rising tuition and housing costs.
- ▪529 plans are becoming more flexible, allowing for broader uses beyond just college expenses.
- ▪Legislation has been introduced to permit the use of unused college savings for down payments on homes.
- ▪The First-Time Homebuyer Empowerment Act is currently under review by the House Committee on Ways and Means.
Opening excerpt (first ~120 words) tap to expand
"Over the past few years, the expanded uses of 529 plans continue to transform the account beyond just 'college-only,'" said Thomas Psaltis, head of education savings programs at Bank of America and Merrill. "At its core, 529 plans are one of the best tax-advantaged ways for families to help pay for future education costs and ease the burden for the next generation as tuition costs continue to rise," he said.Even more flexibility could be forthcoming: Earlier this year, Reps. Tom Barrett, R-Mich., Tracey Mann, R-Kan., Mark Alford, R-Mo., and Lou Correa, D-Calif., introduced the First-Time Homebuyer Empowerment Act, which would allow accountholders to put unused college savings toward a down payment on a home.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Personal Finance.
Discussion
0 commentsMore from CNBC — Personal Finance
