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An Added Benefit: 529 Funds Can Now Be Used for K-12 Tuition

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On December 22, 2017, a wide-ranging tax reform bill (H.R. 1) was signed into law, bringing new flexibility and utility to 529 accounts.

Your 529 plan can now be used to fund tuition costs for private and religious K-12 education, up to $10,000 per child per year.

Because K-12 tuition is now a qualified higher education expense, some states may offer a deduction from individual state income taxes (Virginia, for example, offers up to a $4,000 deduction). This benefit alone gives some Virginia529 account holders a new way to save money for both current and future academic expenses.

Tuition costs must originate on or after January 1, 2018, to be eligible under this new law. The costs of textbooks, room and board, supplies and other expenses for K-12 education are not covered under this new rule. Homeschooling expenses are currently not considered qualified higher education expenses.

If you have any questions, please contact Virginia529 Customer Service.


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Resources to help you learn

Virginia529 offers free, in-person information sessions at locations across Virginia. These hour-long sessions highlight the program’s three plans, explain the benefits to account owners and give you the chance to get your questions answered. If you don’t live near one of our in-person sessions, Virginia529 offers online webinars where you can learn more from the comfort of your own home.