Using 529 Funds to pay for K-12 Expenses
One of the benefits of saving with a 529 plan is being able to save for multiple goals within the same tax-advantaged account.
If you plan to access your 529 funds to pay for certain kindergarten through high school costs (see below for qualifying expenses), Path2College makes it easy to do so.
The Path2College 529 Plan offers significant flexibility to help meet your savings goals.
By design, the Enrollment Year Investment Portfolios allow you to tailor your holdings specific to when you need the funds. This makes it possible and easy to save for multiple goals within the same account.
For example, two scenarios are shown below, showing possible investment choices for a newborn child, and a 5-year old child:
Saving for a newborn:
For a newborn child, if you intend to enroll them in a public, private, or religious kindergarten program, you could apply a portion of your savings to the Enrollment Year Portfolio that aligns with using the funds in 5 years. Then, for that same newborn child, assume for this example that they will likely head to college when they turn 18. You could apply a portion of your savings to the Enrollment Year Portfolio that aligns with using the funds down the road in 18 years.
Saving for a 5-year old:
Similarly, if you have a 5-year old child, who may be enrolled in a public, private, or religious school starting in 4th grade, you could apply a portion of your savings to the Enrollment Year Portfolio that aligns with using the funds in approximately 4 years. Then, for that same 5-year old child, you could apply a portion of your savings to the Enrollment Year Portfolio that aligns with using the funds down the road in 13 years.
In all scenarios shown above, the asset allocation for the different portfolios adjusts over the years to become more conservative as the enrollment year approaches. It's a great way to minimize risk as you get closer to using your account to pay for qualified education expenses.
As an alternative, you can select one or more Static Investment Portfolios that fit your investment objectives and risk tolerance and timing.
What you need to know
There are certain rules and restrictions when it comes to using your 529 savings to pay for primary or secondary school expenses.
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Qualifying K-12 expenses1
You can pay for qualified K-12 expenses at a public, private, or religious elementary, middle or high school. Qualified expenses include tuition, and, effective 7/4/2025, curriculum and instructional materials, tutoring by approved professionals, standardized tests, dual enrollment fees, and licensed educational therapies for students with disabilities. Limitations apply.1
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Annual withdrawal amount
Currently you can withdraw up to $10,000 each year to pay for qualified K-12 expenses. Per recent legislation, beginning in 2026 that amount will increase to $20,000 per year.2
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Tax advantages
When Path2College funds are used to pay for qualified K-12 expenses, withdrawals are free from federal and Georgia income taxes.
Additional qualifying expenses
What else can 529 funds be used for, beyond primary, secondary or post-secondary expenses?3
- Transfer additional/leftover funds to another eligible beneficiary such as another child, grandchild or even yourself
- Certain apprenticeship expenses (fees, books, supplies and equipment) for programs approved by the U.S. Department of Labor under the National Apprenticeship Act
- Repay student loans—up to a $10,000 lifetime limit per individual (including principal and interest on any qualified education loan)
- 529 funds may be rolled over to a Roth IRA in the name of the beneficiary of the 529 Plan. For Georgia taxpayers, a rollover from a 529 plan account to a Roth IRA will be treated as a qualified withdrawal. If you are not a Georgia taxpayer, these withdrawals may include recapture of tax deduction and state income tax. There are conditions that must be met including the 529 Plan must have been in existence for at least 15 years. You should talk to a qualified professional about how tax provisions affect your circumstances.
- Please see the state tax treatment of withdrawals section in the Plan Description for more information.
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