Not 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 York, Oregon, and Vermont. Notably, California actually further penalizes withdrawals an extra 2.5% for this purpose!

No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.