Using 529 Plans for K-12 Private School Tuition

In this episode of The College Savings Podcast, Lucas and Luna explore how 529 plans can be used for K-12 private school tuition, a lesser-known provision from the Tax Cuts and Jobs Act of 2017. They break down the $10,000 annual limit per beneficiary, the distinction between public and private schools, and how this strategy interacts with state tax deductions. Lucas shares a concrete example: a family in New York contributing to a 529 plan for elementary school tuition and the potential state tax benefits. Luna asks about the timing of withdrawals and the risk of overfunding if the child later attends public high school. They also discuss pitfalls like the generation-skipping transfer tax for grandparents and the importance of coordinating with other education savings. The episode offers a fresh angle on 529 flexibility beyond college, helping parents consider K-12 as a valid qualified expense. #529Plan #K12Tuition #PrivateSchool #CollegeSavings #EducationFunding #TaxCutsAndJobsAct #QualifiedExpenses #StateTaxDeduction #CustodialAccount #UTMA #GenerationSkippingTransferTax #FexingoBusiness #BusinessPodcast #Finance #PersonalFinance #LucasAndLuna #SavingsStrategy #EducationPlanning Keep every episode free: buymeacoffee.com/fexingo