Supply: The Faculty Investor
No, a 529 plan can’t be used for conventional Montessori Faculty or preschool (a minimum of not as a qualifying expense). Nonetheless, there are Montessori elementary and excessive faculties that might be eligible, so long as your state’s 529 plan guidelines permit it.
Within the final decade, the quantity of qualifying training bills which might be allowed for 529 plans has expanded considerably. 529 plans can now be used for Okay-12 training tuition, commerce faculties, and even pupil loans.
Nonetheless, even with these expansions, not each state will permit their residents to make use of the 529 plans past faculty. You must examine your state’s 529 plan guidelines right here.
With that in thoughts, pre-Okay bills are nonetheless not thought-about qualifying bills for a 529 plan. Solely elementary and highschool bills are thought-about qualifying.
529 Plans And Montessori Faculty
529 plans can solely be used for as much as $10,000 per yr in elementary training tuition. Elementary training is outlined by the IRS as:
An eligible elementary or secondary faculty is any public, non-public, or spiritual faculty that gives elementary or secondary training (kindergarten by grade 12), as decided below state legislation.
Conventional Montessori faculty is from ages 2 – 6, which wouldn’t be thought-about elementary training. As such, conventional Montessori faculty is just not thought-about a qualifying 529 plan expense.
Nonetheless, there’s a rising developments of Montessori training being taught in Elementary and Excessive Faculty (Okay-12). Elementary training is a qualifying bills in case your state permits it. On this state of affairs, you’re allowed to make use of as much as $10,000 per yr for tuition solely.
Be aware: Solely tuition is a qualifying expense. Different bills like utility charges, provides, transportation, meals packages, and prolonged day care, should not certified bills.
To search out out in case your state permits Okay-12 training bills, use our 529 plan information or click on in your state within the map under:
What About Different Early Training Or Preschool Choices?
Solely Okay-12 tuition bills are allowed as qualifying 529 plan bills. So early elementary or preschool is NOT thought-about a qualifying training expense.
This consists of preschool, daycare, parenting co-ops, church preschool, and different early training choices.
Solely elementary bills (that are kindergarten and better) are eligible.
