School tuition payers can now use tax-advantaged 529 Savings Accounts to pay for K-12 tuition in addition to college tuition, thanks to changes in State and Federal tax laws supported by WCRIS. You can alert parents about this important change with the PDF linked below.
By saving money tax-free, parents will have more resources to ensure children get the education they need before college.
Through Wisconsin Act 231(AB 259) Wisconsin’s 529 Savings Account rules were changed to allow coverage for K-12 tuition expenses. This was first permitted in federal law when President Trump signed the Federal Tax Cut and Jobs Act in December.
In order to make the federal law effective in Wisconsin, WCRIS worked with state legislators to pass Act 231 and testified in support of it this Spring.
Alongside that change, Wisconsin lawmakers passed another provision allowing businesses to make contributions to 529 Savings Accounts of their employees and receive tax credits.
Through Act 197 (SB 75) state lawmakers created an individual and corporate income and franchise tax credit for amounts contributed by an employer into an employee’s 529 savings account. This was passed to help employers recruit employees by offering them a valuable benefit.
Taken together, these two laws can provide substantial financial help to families paying tuition for K-12 schooling.
Nearly every state sponsors a 529 account for its citizens to allow them to take advantage of in-state tax benefits. In Wisconsin, the plan is called EdVest and is run by state government. It offers account owners 17 portfolios from which to choose to invest.
Parents can invest in any state’s 529 accounts. Some state plans are better managed than other states and therefore have higher returns. Wisconsin’s plan has one of the lowest costs in the U.S.
You can help your parents learn more about Wisconsins EdVest 529 Savings Account here.
General information about 529 savings account is avaible here.
