WARNING for All Parents Using 529 Plans for College Funds Currently

Attention all parents using 529 funds for college funding, please be careful NOT TO take your spring (2016) distribution this year (2015). While the bill may already be in your mailbox, the IRS frowns upon mismatching of tax years.

Match your Distribution years529

We do have known contacts of IRS problems associated with the spring tuition payment being taken out this year – leading to the appearance of a much greater distribution in the current year. Unfortunately many colleges don’t give a great deal of time to pay spring tuition, however the IRS wants us to keep the bills associated with our college funding in the same tax year. 

If you’ve received your spring tuition, hold off on taking that 529 distribution until next year. Otherwise the IRS may be at our doorstep! Accidents do happen, and it will not be the end of the world, but if possible dot the i’s and cross the t’s on this one !

Some really neat stuff coming in the next few weeks…but that is later…enjoy your weekend !

John A. Kvale CFA, CFP

8222 Douglas Ave # 590
Dallas, TX 75225



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