One big surprise, however, was the last-minute insertion of language by Senator Ted Cruz (R-Texas) to make qualified up to $10,000 in 529 withdrawals for tuition to K-12 schools. Qualifying schools include public, private, and religious schools K-12 schools. Earnings on qualified withdrawals for K-12 expenses are federal tax-free right now for everyone. The remaining states will also require new law to address the changes introduced by the Tax Cuts & Jobs Act. On its site, for example, Alabama states that the Alabama statute the created its CollegeCounts plan does not allow distributions for K-12 expenses.

Source: Forbes January 22, 2018 15:33 UTC