You may be able to draw more from a 529 savings plan
Start date
July 4, 2025 (for expanded eligible expense items); January 1, 2026 (for increased withdrawal limits)
Details
Parents are now able to use more money from 529 college savings plans for K-12 education expenses including tuition, instructional materials, tutoring and some standardized test preparations. The amount parents can withdraw for K-12 expenses, per student, is doubled from $10,000 to $20,000.
Beyond increasing what can be used for K-12, the law expands the use of 529 funds for other costs, including:
- Tuition, books, and fees related to professional licensing programs
- Required continuing education courses to maintain licensing or certification
- Some education-related therapies
- Support for diagnosed learning differences, included ADHD
- Some qualifying credentialing and vocational programs
Caveats
Each state administers its own 529 plan. Many states are moving to conform to federal rules. But be sure to check in with your specific state to see if your withdrawal will remain tax-free at the state-level.
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