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This expansion isn’t just about new rules—it’s about unlocking real financial advantages for your...
Big News for Families: Your 529 Plan Just Got a Major Upgrade
Get Smarter Prep is thrilled to share game-changing news that could transform how you approach your student’s educational journey. Thanks to the newly signed “One Big Beautiful Bill Act,” 529 college savings plans now offer dramatically expanded benefits—including coverage for tutoring and test preparation services.
What’s Changed?
Starting July 4, 2025, families can use their 529 plan funds tax-free for a comprehensive range of K-12 educational expenses, including:
- Tutoring services (not just tuition!)
- Standardized test fees (SAT, ACT, AP exams)
- Test prep classes and materials
- Curriculum materials, books, and online educational resources
- Educational therapies for students with disabilities
Even better news: you can withdraw up to $20,000 per year for these expanded K-12 expenses!
When Can You Start?
These new benefits are available for distributions made after July 4, 2025, meaning you can start using your 529 funds for tutoring and test prep with the 2025–2026 school year.
Quick Reference Guide
| Expense Type | Covered Under New Law? | Effective Date |
|---|---|---|
| K-12 Tuition | Yes | Already allowed |
| Tutoring (K-12) | Yes | July 4, 2025 onward |
| Test Prep (SAT, ACT) | Yes | July 4, 2025 onward |
| Homeschool Materials | Yes | July 4, 2025 onward |
| Educational Therapies | Yes | July 4, 2025 onward |
Please consult with your accountant for personalized advice on how these changes affect your situation. Also check your state’s 529 plan administrator, as some states may need time to update their rules to align with the new federal law.
Smart Tips for Success
- Verify State Rules: While federal law is now in effect, some states may need time to update their regulations.
- Document Everything: Keep detailed receipts for all tutoring and test prep expenses paid with 529 funds for tax and state compliance purposes.
Ready to Maximize This Opportunity?
Have questions about how these changes can benefit your family? Ready to use your 529 funds for private, one-on-one test prep? Contact Get Smarter Prep today! We’re dedicated to helping students reach their full potential—and now your 529 plan can be part of that success story.