Kentucky parents can now use 529 account funds to pay for K-12 tuition.
The Tax Cuts and Jobs Act of 2017 recently amended in state legislature, allows for expanded use of 529 account funds.
Parents can withdraw up to $10,000 per year from a Kentucky Education Savings Plan Trust, according to Kentucky House Bill 434.
David Lawhorn, Kentucky Education Savings Plan Trust program manager, encourages families to start saving for educational cost while their children are young, and timing is certainly a factor if a family is saving for K-12 tuition. Kentucky Education Savings Plan Trust offers many advantages for Kentucky residents, and this new law gives families an opportunity to leverage those benefits for many years.
Kentucky Education Savings Plan Trust savings are not a factor in determining Kentucky need-based financial aid for Kentucky students wishing to go to college, but federal and institutional aid programs may take the 529 balance in to account.