gettyThe Rules Of A 529 Plan For K-12 EducationFederal law allows families to use $10,000 in 529 funds for K-12 tuition without any federal taxes or penalties. Whether families pay state taxes on withdrawals for private K-12 tuition depends on the state they live in. The $10,000 limit for private K-12 tuition is an annual limit, so families can use this benefit year after year. Unfortunately, using money in a 529 plan for private K-12 tuition doesn’t come with as much flexibility as using funds for college tuition and other higher education expenses. Another reason to use a 529 plan to pay for K-12 education is to take some gains off of the table.

Source: Forbes October 05, 2020 14:15 UTC