How the One Big Beautiful Bill Act Will Reshape 529 Plans
- RetirementGuy
- 5 days ago
- 1 min read
President Trump's tax package, the One Big Beautiful Bill Act (OBBBA), passed the House in May and the Senate this past week. On July 4th, Trump signed the bill into law, with some provisions taking effect immediately. However, the exact timeline for 529 expansions may depend on guidance from the Treasury and IRS.
Among its key proposals is an expansion of 529 education savings plans created to help families save for future education expenses. Not just a college savings vehicle, 529 plans can also be useful estate planning and retirement savings tools.
With a 529 plan, contributions grow tax-free, and withdrawals for qualified education costs are also tax-free. Considering the cost of college, a little help now could go a long way in planning for your child’s education.