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.
We are currently working to incorporate these provisions into the Maryland College Investment Plan on behalf of our account holders. We will be providing additional updates on this page as we work through the necessary changes to accommodate these measures.