Expanded Qualified Expenses for 529 Plans Benefit Plan Owners

Tax-advantaged 529 accounts can now be utilized to cover a broader range of qualified educational expenses, including certain trade credential programs. Qualified education expenses associated with enrollment or attendance at private or religious elementary and secondary schools (kindergarten through 12th grade) have been expanded beyond just tuition, now encompassing costs for books, online education materials, and tutoring fees. Furthermore, beginning in 2026, the annual limit for K-12 expenses will rise to $20,000 (up from $10,000). Tax-advantaged treatment applies to savings used for qualified education expenses, though state tax treatment may differ.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Updated June 2025

Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.​