Maryland 529 Plan can now be used for K-12 tuition!
A new provision in the federal Tax Cuts and Jobs Act that expands the usage of Section 529 College Savings Plans allows account funds to be used for K-12 private school tuition. The Catholic school community is excited about this new allowance and the tax benefits for parents now associated with tuition payments through 529 Accounts. Please note that Maryland law, by default, extends an additional state tax deduction and tax-free treatment on account growth and distribution to K-12 tuition expenditures. The Maryland 529 Account program (managed by the state in partnership with T. Rowe Price) can now be used for payment of your K-12 tuition! There is no income limitation associated with opening a 529 account. By utilizing this tool, you may be eligible for a tax break and the tax-free growth might also be used to pay for tuition in later years!
Governor Hogan just signed a bill expanding part of the Maryland 529 Program that allows for a $500 contribution from the State of Maryland to encourage families to get their accounts started.
Parents will be presumably be able to get this match for next year, but if they want to get their free $500 state contribution THIS YEAR, they’ll need to a.) open an account before June 1, 2018 and b.) apply for the match program before June 1, 2018.
Please see the attached flyer from the State of Maryland for more information on the tax savings of Maryland 529 Plans. Click here for information from the US Conference of Catholic Bishops explaining the new ability to use 529 plans for K-12 tution!
To open your account, visit: https://maryland529.com/enroll-now
To apply for the State Contribution Program, visit: https://maryland529.com/MDMatch250
*Do not worry about all of the references to "college" in the Maryland 529 material. K-12 tuition is a new allowable expenditure!
*Also, you should seek the advice of a licensed accountant in all tax-related matters.