Changes Coming to Education Plans in 2011
WASHINGTON ( TheStreet) - Saving for a child's education costs can be one of the most daunting and confusing tasks.
There will be a few changes coming for education savings plans in 2011. Depending upon what Congress does with tax legislation between now and the end of the year, these changes may or may not see the light of day.
This less-popular "cousin" of the 529 plan will undergo two major changes in 2011:
- Annual contribution limit reduced from $2,000 to $500
- Qualified distributions are only allowed for post-secondary education
- Users can no longer use distributions to buy computer equipment and services.
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