Section 529 Educational Savings Plans can now be used for private primary schools.
Under pre-Tax Cuts law, funds in a Section 529 account could only be used for qualified higher education expenses. These included college and grad school costs for tuition, fees, books, supplies, and required equipment as well as reasonable room and board if the student was enrolled at least half-time. Eligible schools included colleges and universities, vocational schools or other post-secondary schools eligible to participate in a student aid program of the Department of Education.
For distributions made after December 31, 2017, the new law includes up to $10,000 of tuition at an elementary or secondary public, private or religious school.
Sandy’s note: Thus, if you want to send your kids or grand kids to a great private elementary or high school or want to send them to a religiously oriented school, you can do so and use up to $10,000 of section 529 fund money each year. These accounts are a great way to save for both colleges and for private primary school tuition too.
Thus, start saving early for your child or grandchild.
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