The state Assembly last week passed a bill that makes some changes to the Wisconsin 529 College Savings Plans, EdVest and Tomorrow’s Scholar.
The state Senate already passed an identical bill, so the changes are set to become law with Gov. Scott Walker’s signature.
Among the changes, the most significant is the now unlimited carry forward of excess contributions, said Susie Bauer, first vice president, 529/UIT manager at Robert W. Baird & Co. Inc. in Milwaukee.
If a contributor to one of the college funds gives $4,000, which is over the $3,000 annual deduction limit, that $1,000 can be deducted from the next year’s taxes, she said.
“I think it helps people contribute more or plan on contributing more and not get stuck at that $3,000 level and thinking ‘That’s really all I can contribute,’” Bauer said.
Maximum deductions are also now indexed to inflation, and the contribution deadline has been extended from December 31 to April 15 of the next year.
Additionally, the language in the law has been changed to give a clearer protection to account holders in the case of attacks or creditor claims on 529 accounts.
