A 529 plan is a tax-deferred investment that encourages saving for future college costs. As a result of the 2018 tax reform, a 529 plan can now be used to save for both private K-12 and college tuition as well as other educational expenses at the college level. For K-12 education, you can use up to $10,000 per calendar year per student to pay tuition expenses.
For K-12 private education, funds from a 529 plan can be applied towards tuition only. For college education, 529 plan funds can also be applied towards tutoring, books, curricular materials, technology, and supplies.
If you have not already started saving with a college and/or private K-12 education with a 529 plan, now is a great time to begin. Funds can be contributed to the plan tax-free, and you can change the beneficiary of any remaining funds even after your child has graduated from college. For more information and tips, please visit savingforcollege.com. If you have any additional questions, we encourage you to consult your tax and financial advisor.