{"id":10163,"date":"2025-07-19T18:00:00","date_gmt":"2025-07-19T18:00:00","guid":{"rendered":"https:\/\/riverbend.objectivebrand.com\/?p=10163"},"modified":"2025-07-17T17:39:41","modified_gmt":"2025-07-17T17:39:41","slug":"educational-uses-for-your-529plan","status":"publish","type":"post","link":"https:\/\/riverbend.objectivebrand.com\/?p=10163","title":{"rendered":"New Educational Uses for Your 529 Plan-Finger Financial Five #222"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"10163\" class=\"elementor elementor-10163\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-98a0b4e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"98a0b4e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8b5939f\" data-id=\"8b5939f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4cbac8c elementor-widget elementor-widget-text-editor\" data-id=\"4cbac8c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3>What the OBBBA Means for Your 529 Educational Plan<\/h3><p>The &#8220;One Big Beautiful Bill Act&#8221; (OBBBA) has transformed these accounts into a more flexible and powerful tool for a broader range of educational pursuits.<\/p><h4>K-12 Education Is Now More Flexible Than It Used To Be<\/h4><p>The OBBBA significantly expands the definition of a <strong>&#8220;qualified expense&#8221; for K-12 schooling<\/strong>. While previously limited to just tuition for this age group, the law now allows for tax-free withdrawals for a broader array of expenses. This includes:<\/p><ul><li>Curriculum materials and books<\/li><li>Fees for nationally standardized tests (like the SAT or ACT)<\/li><li>Dual enrollment fees for college courses taken in high school<\/li><li><strong>Online educational materials and tutoring, which could include software<\/strong><\/li><li>Specialized therapies for students with disabilities<\/li><\/ul><p>This expansion of qualified expenses brings the<strong> K-12<\/strong> rules closer to the current <strong>higher education<\/strong> rules.<\/p><p>In addition, the annual withdrawal limit for K-12 education was doubled, increasing from $10,000 per year per beneficiary to <strong>$20,000 per year<\/strong> [Source: my529]. This is especially <strong>beneficial if you have a child or grandchild going to a private high school<\/strong>. You can deposit into the 529 plan and then withdraw it for tuition. 529 plan tax benefits vary by state. Be sure to check your state\u2019s rules.\u00a0<\/p><p>(As a reminder, there are no annual withdrawal limits for qualified <strong>higher education<\/strong> expenses. That detail did not change with the passing of this new bill.)<\/p><p><strong>South Carolina <\/strong>offers a generous state tax deduction for contributions to its 529 plan, called Future Scholar. SC residents can deduct <strong>100% of their contributions<\/strong> to a Future Scholar account from their South Carolina state income taxes. (Which is not the case in every state)<\/p><p>Here are some key details:<\/p><ul><li><strong>No Cap:<\/strong> There is no annual contribution cap for the deduction. You can deduct the full amount of your contributions, up to the maximum account balance limit.<\/li><li><strong>In-State Plan:<\/strong> The deduction is only available for contributions made to the South Carolina-sponsored plan, Future Scholar. Contributions to 529 plans from other states are not eligible for this deduction.<\/li><li><strong>Contribution Deadline:<\/strong> You have until the tax-filing deadline (typically April 15th) to make a contribution for the previous tax year and still claim the deduction on that year&#8217;s state tax return.<\/li><\/ul><h4>Workforce and Career Development- I love this one.<\/h4><p>In a world where career paths are constantly evolving, the OBBBA acknowledges the importance of lifelong learning. It now allows for tax-free withdrawals to cover costs for a variety of non-traditional educational programs, including:<\/p><ul><li>Tuition and fees for certificate programs, <strong>trade schools, and other credentialing<\/strong> programs authorized under the Workforce Innovation and Opportunity Act [Source: Invest529].<\/li><li>Testing fees for professional certifications and licenses.<\/li><li>Continuing education costs required to renew a credential. HA! This would even apply to me with my CFP\u00ae, CIMA\u00ae, and other certifications!<\/li><\/ul><h4>Permanent ABLE Account Rollovers<\/h4><p>The OBBBA makes permanent the ability to roll over funds from a 529 plan to an Achieving a Better Life Experience (ABLE) account. This provision, which was previously set to expire at the end of 2025, provides more certainty and flexibility for families saving for a loved one with a disability.<\/p><p><strong>These changes make 529 plans a more versatile tool for saving for a variety of educational and career paths, not just traditional college degrees.<\/strong><\/p><p><span data-teams=\"true\">Separate from the topic of this FFF, some of our thoughts were shared in a recent &#8216;MarketWatch&#8217; article &#8211; <a href=\"https:\/\/www.marketwatch.com\/story\/millennials-say-they-need-847-000-to-feel-comfortable-financially-heres-how-much-gen-z-gen-x-and-boomers-want-1b704a6e?st=GsuNAB&amp;reflink=desktopwebshare_permalink\" target=\"_blank\" rel=\"noopener\">Check that out here<\/a>!<\/span><\/p><p>If you have any questions about your specific situation, please don&#8217;t hesitate to contact us.<\/p><p>Check out our new video on,\u00a0<a href=\"https:\/\/youtu.be\/tX9Xz7yebWc\" target=\"_blank\" rel=\"noopener\">Brutally Honest Retirement Advice for 6 Minute<\/a>.<\/p><p><a href=\"https:\/\/youtu.be\/tX9Xz7yebWc\" rel=\"attachment wp-att-10167 noopener\" target=\"_blank\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-10167\" src=\"http:\/\/riverbend.objectivebrand.com\/wp-content\/uploads\/2025\/07\/T28-BrutallyHonestRetirementAdvice-4.jpg\" alt=\"Brutally Honest Retirement Advice for 6 Minute\" width=\"1344\" height=\"768\" srcset=\"https:\/\/riverbend.objectivebrand.com\/wp-content\/uploads\/2025\/07\/T28-BrutallyHonestRetirementAdvice-4.jpg 1344w, https:\/\/riverbend.objectivebrand.com\/wp-content\/uploads\/2025\/07\/T28-BrutallyHonestRetirementAdvice-4-300x171.jpg 300w, https:\/\/riverbend.objectivebrand.com\/wp-content\/uploads\/2025\/07\/T28-BrutallyHonestRetirementAdvice-4-1024x585.jpg 1024w, https:\/\/riverbend.objectivebrand.com\/wp-content\/uploads\/2025\/07\/T28-BrutallyHonestRetirementAdvice-4-768x439.jpg 768w, https:\/\/riverbend.objectivebrand.com\/wp-content\/uploads\/2025\/07\/T28-BrutallyHonestRetirementAdvice-4-610x349.jpg 610w\" sizes=\"(max-width: 1344px) 100vw, 1344px\" \/><\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>What the OBBBA Means for Your 529 Educational Plan The &#8220;One Big Beautiful Bill Act&#8221; (OBBBA) has transformed these accounts into a more flexible and powerful tool for a broader range of educational pursuits. K-12&#8230; <a class=\"read-more\" title=\"FULL STORY\" href=\"https:\/\/riverbend.objectivebrand.com\/?p=10163\">Read More<\/a><\/p>\n","protected":false},"author":3,"featured_media":10165,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[4],"tags":[108],"class_list":{"0":"post-10163","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finger-financial-five","8":"tag-education","9":"entry"},"acf":[],"_links":{"self":[{"href":"https:\/\/riverbend.objectivebrand.com\/index.php?rest_route=\/wp\/v2\/posts\/10163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riverbend.objectivebrand.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riverbend.objectivebrand.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riverbend.objectivebrand.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riverbend.objectivebrand.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10163"}],"version-history":[{"count":12,"href":"https:\/\/riverbend.objectivebrand.com\/index.php?rest_route=\/wp\/v2\/posts\/10163\/revisions"}],"predecessor-version":[{"id":10179,"href":"https:\/\/riverbend.objectivebrand.com\/index.php?rest_route=\/wp\/v2\/posts\/10163\/revisions\/10179"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riverbend.objectivebrand.com\/index.php?rest_route=\/wp\/v2\/media\/10165"}],"wp:attachment":[{"href":"https:\/\/riverbend.objectivebrand.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riverbend.objectivebrand.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riverbend.objectivebrand.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}