Can You Use a 529 Plan for Montessori Schools?
Many parents are excited to save for their child’s education using a 529 plan, but the question arises about whether Montessori schools are eligible expenses. The answer is mixed: while traditional Montessori preschools are not considered qualifying expenses for a 529 plan, there are Montessori elementary and high schools that may be eligible, depending on your state’s rules.
Over the past decade, 529 plans have expanded their qualifying education expenses to include K-12 education tuition, trade schools, and student loans. However, it’s important to note that not every state allows 529 plans to be used beyond college, so it’s essential to check your state’s specific rules.
529 Plans And Montessori School
According to the IRS, 529 plans can be used for up to $10,000 per year in elementary education tuition. Elementary education is defined as any public, private, or religious school that provides education from kindergarten through grade 12.
Traditional Montessori schools typically serve children from ages 2 to 6, which is not considered elementary education. However, there is a growing trend of Montessori education being offered in elementary and high schools (K-12), which may be eligible for 529 plan funds.
It’s important to remember that only tuition is considered a qualifying expense for a 529 plan. Other expenses like application fees, supplies, transportation, food programs, and extended day care are not eligible.
What About Other Early Education Or Preschool Options?
Unfortunately, early education or preschool expenses are not considered qualifying expenses for a 529 plan. This includes preschool, daycare, parenting co-ops, church preschool, and other early education options. Only expenses for kindergarten and higher are eligible for a 529 plan.
FAQs
Can I use a 529 plan for traditional Montessori preschool?
No, traditional Montessori preschool expenses are not considered qualifying expenses for a 529 plan.
Are Montessori elementary and high schools eligible for a 529 plan?
Some Montessori elementary and high schools may be eligible for a 529 plan, depending on your state’s rules.
Can I use a 529 plan for other early education or preschool options?
No, expenses for early education or preschool are not considered qualifying expenses for a 529 plan.
Conclusion
While traditional Montessori preschools may not qualify for a 529 plan, parents looking to save for their child’s education can explore options with Montessori elementary and high schools. It’s essential to check your state’s specific rules and guidelines regarding the use of 529 plan funds for education expenses.