In the past, 529 Savings Accounts could only be used for college expenses. Due to 2017 tax reform, 529s can now be used for Kindergarten through High School (K-12).
For K-12, tuition is the only qualified expense, and the new tax law allows a maximum distribution of $10,000 per year from the 529.
The biggest federal tax benefit of 529 Savings Program is that all money contributed to the plan grows tax-deferred and cab be withdrawn tax-free for qualified education costs.
For more information, please take a moment to read 529 Savings Accounts: Summary & 2018 Update published by the Texas Catholic Conference of Bishops Education Department (TCCBED).
Michael Fierro
Principal