Up to $20,000 may now be used per year per beneficiary, effective for tax years beginning in 2026.
This amount is double the $10,000 annual cap that applied from 2018 through 2025.
The rules in this chapter
- 1Not all states allow K-12 qualified distributions.Note that not all plans allow the K-12 tax-free expense distribution feature, including California, Colorado, Connecticut, Hawaii, Illinois, Michigan, Minnesota, Montana, Nebraska, New Mexico, New Yor
- 2You may pay for school tuition, books, and software through a 529 account.Tuition in private elementary school, middle school, or high school.
- 3You may pay for a tutor through a 529 account.Qualified expenses now include tuition for tutoring or educational classes outside of the home, including at a tutoring facility, IF the tutor or instructor is not related to the student and:
- 4What is a “tutor”?A math, English, or second language Spanish after-school tutor outside of your home should qualify.
- 5Beneficiaries with disabilities can pay for treatments.Educational therapy costs for students with disabilities provided by a licensed or accredited practitioner or provider are qualified, including occupational, behavioral, physical, and speech-language therapies.
- 6High school age benefits include test fees and advanced course tuition.Fees are qualified for a nationally standardized norm-referenced achievement test such as the SAT or ACT, an advanced placement (AP) course examination, or any examinations related to college or university admission.