529 Education Savings Plans: Federal Action and State Policy Trends

The change at the federal level that allows 529 education savings plans to be used for K-12 tuition has prompted a number of states to modify policies that govern the tax benefits and other parameters associated with these college savings plans.

This Policy Brief provides a detailed look at 529 education savings plans – investment accounts with tax advantages – including a breakdown of maximum annual dollar amounts and state tax deductions allowed, state responses to the Tax Cuts and Jobs Act, information on legislation in 2018 that changes eligible expenses allowed under 529 plans and a list of questions for state policymakers to consider when identifying the types of data they wish to collect on their existing 529 plans.