Using 529 Plans to Pay for Independent School

The DC College Savings Plan, Maryland 529 (Maryland College Investment Plan), and Virginia529 (Invest529) all offer tax-advantaged savings accounts for future qualified education expenses, including tuition for independent schools. These plans allow earnings to grow tax-deferred, and withdrawals are completely tax-free at the federal level when used for qualified education expenses such as tuition, fees, books, and room and board. While originally created for traditional college and graduate school costs, 529 funds can now also be used for K–12 independent school tuition, registered apprenticeship programs, and even to repay a limited amount of student loan debt.

Families can use a 529 savings plan to pay up to $10,000 per year in tuition for private, public, or religious K–12 schools. These programs are sponsored and approved by the governments of the District of Columbia, Maryland, and Virginia.

Families utilize a variety of creative funding sources beyond parental savings to build 529 college savings accounts. Within the family network, parents often request contributions in lieu of gifts for birthdays and holidays through platforms such as Ugift, or ask grandparents to make direct, tax-advantaged lump-sum deposits. For broader community support, some families leverage crowdfunding by sharing customized fundraising links on social media or through platforms such as GoFundMe, inviting extended family and friends to contribute in celebration of milestones like high school graduation. Beyond personal connections, parents may also take advantage of employer-sponsored benefits, including matching 529 contributions or bonuses directed into education savings accounts. Finally, families can maximize additional savings by linking their accounts to rewards programs such as Upromise, which automatically deposits cash-back earnings from everyday grocery shopping, dining, travel, and online purchases into their child's 529 plan.

You may go to DC College Savings Plan for further information on DC's 529 opportunities, Maryland529 for information on Maryland's 529 opportunities, and inVest529 for information on Virginia's 529 opportunities.

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