In an article published in U.S. News & World Report on Jan. 20, 2016, Jamie Canup answers questions about new legislation affecting 529 college savings plans. In late December 2015, Congress passed long-awaited legislation making computers and related equipment a qualified education expense under 529 tax-advantaged college savings plans. Canup addresses whether funds can be withdrawn now to pay for a computer that was purchased last year. “Most tax advisors tell their clients: ‘Make sure your expenses and distributions occur in the same year,’” Canup explains. He also discusses the new reporting standards, and whether funds can be redeposited if the refund is from 2015. For the full article, you may click here.
Stephanie A. Hood