Republican Tax Plan Will Permit Grandparents To Establish 529 Plans for Grandchild’s K-12 Private School Education
The Republican tax plan that was finalized on Friday and expected to become law by the end of the year, contains many provisions that arguably benefit wealthier families. One of the new provisions involves changes to 529 plan funding. Under current law, tax-free 529 college savings accounts can be used only to pay for college. But the Republican proposal allows parents or grandparents to use that money — up to $10,000 a year per child — to pay for private K-12 school tuition and home-schooling.
Some advocates of school choice have pointed out that it largely benefits wealthier families who can afford to save for private schools. Also, public school advocates say it gives parents incentives to leave public schools, and that harms districts that rely on education funding based on how many pupils enroll.