Living ExpensesĪfter college tuition, living expenses are next on the list for large education expenses. So, from kindergarten to college and graduate school, NC 529 can meet the changing educational needs of your family. But did you know K-12 tuition is also considered a qualified education expense? Yes! Parents can use up to $10,000 per child, per year to pay for elementary and secondary school tuition at public and private schools. K-12 and College TuitionĬollege tuition is a big expense for college students and 529s were specifically designed to help families save for college tuition at eligible institutions.
This benefit applies to the account beneficiary and the beneficiary’s siblings. That means you can withdraw up to $10,000 tax-free to repay a student loan. Among other things, the law made student loan payments a qualified education expense for 529 accounts. The change was made at the end of 2019 when the Secure Act became law. Using 529 funds for student loan payments is a relatively new benefit for 529 account owners. You may think we’re just talking about college expenses, but NC 529 funds are very flexible and can be used to cover many education expenses. These tax-advantaged education accounts are appealing to parents because the earnings grow tax-free if they’re used to pay for qualified education expenses. And while there are many ways to save for education, increasingly more parents are choosing 529 plans, like the NC 529 Plan. From a saving account at your local bank to mutual funds and the stock market, you have a lot of options to meet your investing comfort level. There are many ways to save for your child’s education.
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