Saving for education expenses – The Tax Cuts and Jobs Act changes some benefits

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Abstract: Those with children in private or religious elementary or secondary schools, or who are saving to send their kids to college, will want to be aware of tax-advantaged education-saving programs — including both Section 529 plans and Coverdell Education Savings Accounts (ESAs). This article explains the ins and outs of these plans and accounts and how to use them to help cover some of these costs. The article notes that, while these plans can help save taxes, it’s important to keep in mind that money in the account that’s not used for qualified educational expenses may be subject to taxes and penalties. A sidebar looks at the current status of the student loan deduction.