– 529 Insiders Article of the Week
– News
– Data
– ABLE Act Column
– Events
– Quote of the Week

529 Dash, Required Reading for Your 529 Education: The goal of the 529 Dash is to address the specific needs and concerns of advisers, accountants and estate planners who sell and service families and institutions in the college financial planning process by providing industry relevant news, product training and best practices.

Please Read, Engage and Share.

Paul Curley, CFA
Editor-in-Chief of 529 Dash
Director of College Savings Research
paul.curley@strategic-i.com
Twitter: @PaulCurleyBC
LinkedIn: Strategic Insight 529 Dash LinkedIn Group

State by State Overview of Potential 529 Plan State Tax Benefits on Contributions

This table is designed to help you determine what state income tax deductions and/or credits, if any, are available for those who contribute to a 529 savings plan.

Here is what you need to know from stories released this week.

– Princeton Review, “2017 college hopes & worries survey report.” Editor’s Take: Interesting article on the college selection process of parents in comparison to students. Also, thank you Nancy for bringing the article to my attention.
– Wall Street Journal, “529 college-savings plans are even hotter after tax overhaul.” Editor’s Take: The article points out how restrictions on state and local tax (SALT) deductions due to H.R. 1 may increase demand for 529s plans in those states that also have a state tax deduction or credit on 529 contributions. Read the article here to help you determine if there may be is a state income tax deduction and/or credit on 529 contributions.

Legislative Updates Relating to H.R. 1, The “Tax Cuts and Jobs Act”:
– Radio Iowa, “State treasurer says college savings Iowa money not deductible for K-12 use.”
Editor’s Take:
– At the Federal level, H.R. 1 allows 529 college savings plans to expand its list of qualified expenses to include tuition up to $10,000 per year per beneficiary for elementary or secondary schools (including K-12 public, private or religious) (excluding home schooling) effective for distributions made after December 31, 2017.
– At the State level, roughly 20 states and D.C. automatically update state legislation to align with this federal legislation effective January 1, 2017, while the remaining states will need to take state legislative action to enable the expansion of 529 qualified distributions and, if applicable, state tax incentives. Otherwise, the 529 withdrawal for K-12 tuition may be considered a non-qualified distribution. This article by the Radio Iowa and another article in the Des Moines Register highlights the issue in Iowa. Also, the announcement on the NEST529 website and the article in the Omaha World-Herald highlights the issue in Nebraska. Therefore your client should consult their tax advisor regarding their individual situation before making a withdrawal for K-12 tuition and before making a contribution which they intend to use for K-12 tuition. Also, you should review your 529 plan provider’s website and plan disclosure statements for announcements related to this update.

Here is the latest 529 and ABLE market data by Strategic Insight that can be used by the media and other organizations.

This week’s top news, resources, legislative updates and product announcements relating to ABLE accounts, which are tax-advantaged savings accounts for certain individuals with disabilities and their families.

News, Research, Data & Resources:
– The Lund Report, “Oregon ABLE program enrolls more than 1,000 people with disabilities.” Editor’s Take: The article provides insight on ABLE accounts from the perspective of the state treasurer and account owners. Congrats on the success to date in helping so many families.
– Special Needs Financial Planning, “Top special needs planning blogs of 2017.” Editor’s Take: Article includes links to case studies on how ABLE accounts can be used to help families.
– 529 Insiders, “529 & ABLE 3Q 2017 529 Data Highlights.” Editor’s Take: ABLE is successfully helping a growing number of families to save for qualified expenses.

Events:
– Strategic Insight ABLE Summit 2018 will be held on September 26, 2018, at the JW Marriott Orlando, Grande Lakes.
– Strategic Insight ABLE Summit 2019 will be held on September 25, 2019, at the Ritz-Carlton, Amelia Island

Save the Date:
– 529 Conference 2018: September 24-26, 2018 – JW Marriott Orlando, Grande Lakes
– 529 Conference 2019: September 23-25, 2019 – Ritz-Carlton, Amelia Island

Sessions:
– 529 Conference: A highly interactive and educational industry gathering with the entire college financial planning ecosystem.
– 529 Essentials: A pre-conference session to train professionals on 529 plans in a constantly evolving market.
– ABLE Summit: A post-conference session to deliver insight and networking opportunities to support the successful implementation and growth of ABLE accounts.

Please email Paul at paul.curley@strategic-i.com to inquire about having him provide a 529 continuing education or industry landscape update presentation.

“People need to be realistic in what their expectations are.”

– Peter D’Arruda, President and Founding Principal of Capital Financial & Insurance LLC

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