529 Plans and Private School Tuition
Since 2018, families can use 529 education savings plans to pay for private K-12 tuition—including military schools. This opens new funding options for families considering military education.
How It Works
The Tax Cuts and Jobs Act of 2017 expanded 529 plans to cover:
- Private elementary school tuition
- Private secondary school tuition
- Up to $10,000 per year per beneficiary
This limit is per student, not per account, so multiple 529 accounts for the same child still share the $10,000 annual cap for K-12 expenses.
State-by-State Considerations
While federal law allows 529 K-12 withdrawals, state treatment varies:
- Full conformity states: Allow state tax deductions for K-12 withdrawals
- Partial conformity states: Federal rules apply, but no state tax benefit
- Non-conformity states: May impose state tax penalties on K-12 withdrawals
Check your state's specific rules before making withdrawals.
Strategic Planning Tips
- Start early: 529 contributions grow tax-free, maximizing time in the market
- Contribute consistently: Even small regular contributions add up
- Gift contributions: Grandparents and family can contribute directly
- Superfund option: Front-load up to 5 years of contributions at once
What's Covered
529 funds can pay for:
- Tuition (up to $10,000/year for K-12)
- Room and board (for college only)
- Books and supplies (for college only)
For military boarding schools, only the tuition portion qualifies under K-12 rules.
Common Mistakes to Avoid
- Withdrawing more than $10,000 per year for K-12
- Not checking state conformity rules
- Forgetting to keep documentation
- Using 529 funds for non-qualified expenses
Next Steps
Consult a financial advisor about your specific situation. Explore military school costs to understand total expenses.