Kentucky 529 account funds now available for K-12 tuition

(Source: WAVE 3 News)
(Source: WAVE 3 News)
Updated: Jul. 9, 2018 at 2:18 PM EDT
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LOUISVILLE, KY (WAVE) - 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.

"We encourage 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," said David Lawhorn, KESPT program manager. "KESPT offers many advantages for Kentucky residents, and this new law gives families an opportunity to leverage those benefits for many years."

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For more information about the plans or how to use them, click here.

KESPT 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.

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