Allman Analysis: Tax Reform Includes Gift For Those With Tax-Free College Savings Plans
ST. LOUIS —
When President Trump recently signed tax reform into law, he was not just signing off on lower income tax rates. The law includes a gift for people using tax-free savings plans for college (referred to as 529 Plans).
From now on, money in the 529 Plans can also be used to pay for expenses for Kindergarten through 12th grade. The plans allow people to save and grow money over several years to pay for college tuition for their children. Most states allow them to also deduct that money at tax time.
Missouri savers are in one of the best places to get the deductions, according to State Treasurer Eric Schmitt. Schmitt talked to The Allman Report about the changes on Tuesday. He notes that Missouri is one of the top ten states for deductions, and the expansion of what 529 plan savers can spend just makes it that much better.