Save for K-12 Education with a 529

On December 22, 2017, Congress passed a new tax reform measure which resulted in an expansion of the 529 college savings plans to save for future education costs. Qualified higher education expenses have been expanded to include K-12 tuition. You are now permitted to take 529 college savings plan distributions of up to $10,000 per beneficiary per year for tuition at an elementary or secondary public, private, or religious school.† In addition, rollovers are now permitted from 529 plans to Achieving a Better Life Experience (ABLE) accounts. Distributions for K-12 tuition are not available from the Maryland Prepaid College Trust.

Read our K-12 flyer for addtional information on what you need to know.

† While distributions from 529 college savings plans for elementary or secondary education tuition expenses are federally and Maryland State tax-free, state tax treatment in other states will vary and could include state income taxes assessed, the recapture of previously deducted amounts from state taxes, and/or state-level penalties. You should consult with a tax or legal professional for additional information.