General Treasurer Paul J. Tavares and the Rhode Island Higher Education Assistance Authority have announced that CollegeBoundfund, Rhode Island’s 529 college savings plan, now has added incentives for families saving for their children’s higher education.
The tax bill recently passed by the United States Congress, provides for tax-free withdrawals from 529 plans, like the state-sponsored CollegeBoundfund.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
Because state income taxes are based upon federal tax liability, a system known as the “piggyback tax,” Rhode Island families saving with the plan will not pay federal or state taxes on qualified higher education withdrawals.
At the request of Treasurer Tavares, legislation is currently pending before the General Assembly that allows families to deduct up to $5,000 in annual contributions to the CollegeBoundfund, or $10,000 for a couple filing jointly.
