529 Educational Saving Plans

What was once savings earmarked solely for college tuition can now be used for private school tuition as early as kindergarten. As of January 2018, a portion of the Tax Cuts and Jobs Act bill extends the use of 529 savings plans.

List of 3 items.

  • What are 529 plans?

    A 529 plan is a savings plan originally developed to help families save money for college while earning tax-free interest.  If the money is used for tuition upon withdrawal, no additional taxes will be taken out.  

    Plans are managed by individual states. Each state selects an administrator to broker investments in the plans.  Most families open plans—either on their own or with the help of a financial advisor—in their own state of residence, but one can also open a 529 plan in other states.
  • What are the new benefits?

    Previously, the purpose of 529 accounts was to provide families with a long-term savings option for higher education.  As of January 1, 2018, those benefits have extended significantly to allow families to use up to $10,000 annually from their 529 accounts to cover the cost of tuition for K-12 private schools.  

    If you already have a 529 account and you’ve had a chance to let the interest accrue, it may be beneficial to use some of those savings now.  If you have not yet started a plan but think you might like to, now is a good time to take another look.  A variety of options is available, depending on the age of your child and other factors.
  • How do I set up an account?

    Follow these simple steps:
    1. Select a beneficiary (likely your child, though the account may be transferred to a different beneficiary later).
    2. Gather the address, social security number, and date of birth of the beneficiary.
    3. Work with an investor to determine which account is best for you. You may choose an age-based option taking into consideration the risk level you are comfortable with: conservative, moderate, or aggressive plans.  Additionally, you can custom-select from individual portfolios.
    4. Have your bank account information (account and routing numbers) handy to set up transfers.
For more detailed information on New Hampshire’s plan (managed by Fidelity), visit their website.

High Mowing School

222 Isaac Frye Highway, Wilton NH 03086
(603) 654-2391 phone     (603) 654-6588 fax
Founded in 1942, High Mowing School is an accredited Waldorf co-educational school serving day, boarding, and homestay students in Wilton, NH, from early childhood through grade 12. HMS is a place to grow intellectually, artistically, and socially while living and learning with students from across town and around the world.  Accredited by NEASC and AWSNA (high school current; lower school in process).