Tax Deductions v. Tax-Free Growth: A Closer Look at 529 College Savings Plans Under the TCJA

Journal of Multistate Taxation and Incentives (Thomson Reuters/Tax & Accounting) Volume 29, Number 6, September 2019

8 Pages Posted: 6 Nov 2019

See all articles by Ross Riskin

Ross Riskin

The American College of Financial Services

Date Written: September 1, 2019

Abstract

Now that investors can receive preferential federal income tax treatment when using 529 college savings plans to pay for qualified K-12 tuition expenses under the Tax Cuts and Jobs Act of 2017 (TCJA), it is important to determine whether the value of receiving and investing state income tax deductions provided for qualifying contributions made to this education savings vehicle is more beneficial than the value associated with tax-free growth, given the potential for shortened education planning time horizons.

Keywords: tax deductions, tax-free growth, 529 plans, tax cuts and jobs act

JEL Classification: H24, G11

Suggested Citation

Riskin, Ross, Tax Deductions v. Tax-Free Growth: A Closer Look at 529 College Savings Plans Under the TCJA (September 1, 2019). Journal of Multistate Taxation and Incentives (Thomson Reuters/Tax & Accounting) Volume 29, Number 6, September 2019. Available at SSRN: https://ssrn.com/abstract=3444923

Ross Riskin (Contact Author)

The American College of Financial Services ( email )

King of Prussia, PA 19406
United States

HOME PAGE: http://www.theamericancollege.edu

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