The One Big Beautiful Bill – The Act – introduced several tax-saving opportunities for 2025 and beyond. To gain the most benefit from a few of them requires action.
529 ACCOUNTS — The limit has been doubled.
The qualified expenses have been expanded. The applicable educations have been broadened.
Overfunding options are now available.
Distribution limit per year has been doubled to $20,000.
Expenses now include fees, curriculum, books, online materials, tutoring, equipment, standardized test fees, dual enrollment, and educational therapies for students with disabilities.
Education has been redefined to include qualified post-secondary credentialing and enrollment in recognized certificate, licensing, or apprenticeship programs.
Overfunded accounts can now be rolled into a Roth IRA.
HAVING A BABY — The federal government is giving away $1,000 per child.
Children born January 1, 2025 - December 31, 2028, can receive $1,000 from the federal government when the parent establishes a Trump Account. Parents have 18 years to open the account to gain this benefit.
The North Alabama United Methodist Foundation does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only.
Photo by Caleb Perez on Unsplash