K-12 529 Savings Accounts and Their Usage in K-12 Private Education
Planning for your child’s education can be both exciting and overwhelming, but a 529 savings account offers a strategic way to invest in his or her future. Understanding how a 529 plan works can help you maximize your savings. In this blog, we’ll explore the benefits of a 529 savings account and how your family can use it to support your child’s academic journey.
What is a 529 Savings Account?
A 529 savings account is an investment account for your student’s education. Money invested in a 529 account will typically be invested and could grow, depending on the conditions of the investment. The growth of a 529 account, and thus its sole benefit, is usually derived from the passage of time. The growth of your investment (called Capital Gains) is typically taxed by the federal government, and often your state. Amounts invested in a 529 plan are taxed, but the withdrawals are generally tax-free when used for educational items, such as tuition.
How Can Your Family Use a 529 Savings Account to Save Funds?
The benefit of a 529 plan is that the withdrawn Capital Gains of your investment will be tax-free when used for qualified education expenses, both at the federal level and often at the state level.
Funds in a 529 plan can be used to cover up to $10,000 per year in tuition and fees with any private school, and they are accepted by Enlightium Academy. Additionally, funds from a 529 plan can be used toward qualified educational expenses, such as for a computer used solely for educational purposes, and not for entertainment or amusement. If you have a 529 plan and would like to discuss next steps, you can reach out to an Enrollment Consultant at (866) 488-4818 Opt. 2.
Enlightium Academy is a private Christian online school that serves homeschooling families by offering a Bible-based, flexible, accredited, teacher-supported, and affordable education from the comfort of your home. For any other questions about Enlightium, please call (509) 319-2288, or visit EnlightiumSchool.com.
Source:
https://www.irs.gov/newsroom/529-plans-questions-and-answers