The News We’ve Been Waiting for is Finally Here!
The long-awaited and much-anticipated removal of the sunset provision to the federal tax exemption for 529 plans has become a reality. This is great news for families saving for college using Section 529 plans, including College Illinois!.
Last week, President Bush signed the Pension Protection Act, and a section of that legislation made permanent the federal tax exemption previously granted to these plans. Without the change, the exemption would have expired after 2010 – a concern for families involved in or considering a 529 plan. The Act positively impacts all of the families who have purchased or will purchase College Illinois! prepaid tuition contracts.
With the implementation of this law, College Illinois! participants are assured that plan earnings will continue to be 100 percent exempt from federal income taxes, making 529 plans an even more attractive option for families looking to prepare for their children’s educational future.
Last week, President Bush signed the Pension Protection Act, and a section of that legislation made permanent the federal tax exemption previously granted to these plans. Without the change, the exemption would have expired after 2010 – a concern for families involved in or considering a 529 plan. The Act positively impacts all of the families who have purchased or will purchase College Illinois! prepaid tuition contracts.
With the implementation of this law, College Illinois! participants are assured that plan earnings will continue to be 100 percent exempt from federal income taxes, making 529 plans an even more attractive option for families looking to prepare for their children’s educational future.
posted by College Illinois! at 4:17 PM
