Most people think of 529s as college savings accounts — money grows tax-free and can be used for tuition without penalty. But new changes passed this summer have turned 529s into much more than that.
Families can now use up to $20,000 a year for K–12 expenses, double the old $10,000 cap. Private school tuition, tutoring, and online programs all qualify. The list of “qualified expenses” also expanded. Books, SAT or ACT fees, dual-enrollment college classes, and for children with disabilities, therapies and learning support are now included. 529s can now also cover career training and credential programs — from trade school to aviation mechanics to the bar exam. And one more big change: rolling unused 529 money into ABLE accounts for kids with disabilities is now permanently allowed.
Bottom line? 529s are no longer just college savings accounts. They’re education savings accounts — offering families more flexibility, more options, and more control.
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