President Trump has signed the tax reform bill which represents aa significant overhaul of the American tax system. Upon passage of the comprehensive tax reform legislation by both the U.S. House of Representatives and the U.S. Senate, Treasurer Lynn Fitch discussed what impact the new laws could have on Mississippi families.
“Congress included in its comprehensive tax reform package a small provision that could have a big impact for Mississippi families – expanding 529 college savings to include tuition for public, private, or religious primary and secondary education as a qualified expense. The new law, which President Trump [has signed], limits the distributions for this purpose to $10,000 per student per taxable year. And, the provision applies to distributions made after December 31, 2017,” Fitch said.
With the cost of a college education continuing to be a hot button issue, Fitch went on to say that this law could mean for those experiencing financial troubles will trying to pay for their education.
“College Savings Mississippi is excited at this new option for our MACS account holders and we look forward to working with Mississippi families to help them save for all of their loved ones’ education goals. Approximately 49,000 to 54,000 students attend over 230 private and religious schools in Mississippi each year. This new law may help them as well as others who have faced financial impediments to these options,” Fitch said.
During this time of year, Fitch noted that a saving for ones education can make a great Christmas gift as well.
“We continue to encourage families that are looking for a meaningful gift for the children and grandchildren in their lives to make a gift of education with a contribution to their College Savings Mississippi accounts. This new tax law change makes that gift even more meaningful. For more information on giving the gift of a lifetime, visit my website at http://www.treasurerlynnfitch.ms.gov/pages/gift.aspx.”