By Philip Lee, CFP®

Are you a Massachusetts resident and saving towards college via a 529 Plan?

I’ve often recommended the Nebraska 529 plan or, more recently, the Utah 529 plan since they offer great investment options for college savers. Massachusetts didn't have a tax incentive to save in our state's 529 plan. Now there may be a reason to use the Massachusetts state plan!

Effective January 1, 2017 Massachusetts residents will be able to deduct up to $1,000 in contributions to a Massachusetts Educational Financing Authority (MEFA) U.Fund from their state income tax (up to $2,000 for married couples filing jointly). This will be available to taxpayers through the 2021 tax year, when the deduction is scheduled to expire.

This is a reminder that “things always change” and it’s always good to re-evaluate your savings and tax strategies.