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Can our investment in 529 accounts of our grandchildren (between the ages of 2 & 7) can be utilized for elementary/highschool tuition?
As mentioned earlier, we are alien grand parents and our grandchildren are American. We wish to invest some funds for their education in 529 College Saving Accounts. Can they utilize that money to pay their elementary and high school tuition fees as well or only for college education?
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No. Section 529 plans can only be used for qualified education expenses for postsecondary education, either graduate or graduate. The list of qualified expenses for a 529 plan is expanded from the education tax credits, but does not include K-12 education costs. The only governmental plan that covers secondary schooling is the Coverdell Education Savings Account. In addition, the newly established ABLE accounts will allow expenditures for education for certain disabled persons.Leave a Comment 153 weeks ago