Can You Use a 529 Plan to Pay for High School?

529 Plans Cover College and Graduate School, Not High School

A 529 plan cannot be used to pay for high school tuition, whether the school is public or private. The tax-free withdrawal rules that make 529 plans valuable apply only to may have access to education expenses at colleges, universities, graduate schools, and certain vocational programs. High school — public or private — does not may have access to.

If you withdraw money from a 529 to pay high school tuition, you will owe income tax on the earnings portion of that withdrawal, plus a 10 percent penalty on those earnings. The contribution portion (the money you originally deposited) comes out tax-free, but the growth does not. That penalty exists specifically to discourage non-may have access to withdrawals.

There is one narrow exception: as of 2024, you can roll up to $35,000 from a 529 plan into a Roth IRA in the account owner's name, but only if the 529 has been open for at least 15 years. This is not a way to pay for high school — it is a way to move unused education money into retirement savings. The rollover itself does not help with high school costs.

Key Takeaways

• High school tuition is not a may have access to expense under 529 plan rules, so withdrawals for it trigger income tax and a 10 percent penalty on earnings.
• Public high school tuition is free, so most families do not face this issue; private high school is where the question arises.
• Money in a 529 can sit unused until college without penalty, and you can change the beneficiary to another family member if the original student does not attend college.
• If you have a child starting high school soon and money in a 529, consider leaving it there for college expenses or rolling it to a younger sibling's account.

What Counts as a may have access to Education Expense in a 529

The IRS defines may have access to expenses narrowly. They include tuition and fees at an accredited college, university, graduate school, or vocational school. They also include room and board if the student is enrolled at least half-time, books, supplies, and equipment required by the school. As of 2024, up to $35,000 per year in 529 funds can also be used to pay down student loans (with a lifetime limit of $35,000 total).

High school does not appear on this list. Neither do K-12 private school tuition, tutoring, test prep, computers, or sports programs. The rule is strict: if the expense is not at a post-secondary institution, it does not may have access to for tax-free withdrawal.

Why High School Is Excluded

The 529 program was designed to encourage saving for college, which is expensive and happens after high school. Public high school is free in the United States, so Congress did not see a need to create a tax break for private high school tuition. The program's tax incentive is meant to address the college affordability problem specifically.

This does not mean private high school is not a legitimate expense — it simply means the 529 tax break does not apply to it. If you are paying private high school tuition, you may be able to deduct some of it on your taxes depending on your state, but that is a different benefit and varies by location.

What Happens If You Withdraw for High School Anyway

If you take money out of a 529 to pay high school tuition, the withdrawal is treated as non-may have access to. The contribution portion comes out first and is never taxed. The earnings portion is taxed as ordinary income in the year you withdraw it, and you pay a 10 percent penalty on just the earnings, not the whole amount.

Example: You contributed $50,000 to a 529 over the years, and it has grown to $70,000. You withdraw $20,000 for high school tuition. Of that $20,000, roughly $14,286 is contributions (tax-free) and $5,714 is earnings. You owe income tax on the $5,714 at your ordinary tax rate, plus a $571 penalty (10 percent of $5,714). The exact split depends on your account's contribution-to-earnings ratio.

The penalty is not trivial, and it erodes the tax advantage that made the 529 attractive in the first place. For this reason, most families with 529 accounts do not use them for high school.

Alternatives If You Need to Pay Private High School Tuition

If you have a 529 account and a child attending private high school, you have several options. The first is to leave the money in the 529 and pay high school tuition from other sources — savings, income, or loans. This preserves the tax-free growth for college.

The second is to change the beneficiary. If you have a younger child, you can transfer the 529 account to them without penalty or tax. The money stays in the account and grows tax-free until that child goes to college. This works well if your older child is attending high school on scholarship or if you have already saved separately for their college costs.

The third is to withdraw the money and accept the tax and penalty. This makes sense only if the 529 account is small, the earnings are minimal, or you have no other way to pay the tuition. Run the numbers with a tax professional first.

A fourth option, available in some states, is to use a Coverdell Education Savings Account (ESA) instead of a 529 for high school. Coverdells do allow K-12 private school tuition as a may have access to expense, though they have lower contribution limits ($2,000 per year per beneficiary) and income phase-outs. If you are still in the planning stage and expect to pay private high school tuition, a Coverdell may be worth exploring alongside or instead of a 529.

How to Avoid the Problem Before It Starts

If you are opening a 529 account and your child is already in middle school, think ahead about high school. If private high school is likely, consider whether a Coverdell makes more sense, or whether you should save for high school separately and reserve the 529 for college.

If you already have a 529 and your child is approaching high school, do not assume you have to use it. The account can sit for four more years while your child attends high school, and the money will continue to grow tax-free. By the time college arrives, the account may have grown significantly, and you will have the full tax benefit.

If you have multiple children, a 529 for each one gives you flexibility. You can use one account for a child heading to college and transfer another to a younger sibling who may attend private high school. The IRS allows you to change beneficiaries to any family member, including cousins, so the money does not have to go unused.

Frequently Asked Questions

Can I use a 529 to pay for private high school tuition?

No. High school tuition is not a may have access to expense under 529 rules, even for private schools. Withdrawals for high school trigger income tax and a 10 percent penalty on the earnings portion of the withdrawal. The only exception is a Coverdell Education Savings Account, which does allow K-12 private school tuition.

What if I withdraw money from a 529 for high school and then my child goes to college?

The money you withdrew is gone and cannot be put back into the 529. You can continue contributing to the account for college expenses, but the amount you took out for high school will not be recovered. Plan withdrawals carefully, because they are permanent.

Can I roll a 529 to a Coverdell to use it for high school?

No. You cannot roll money from a 529 into a Coverdell. However, you can open a new Coverdell account and contribute up to $2,000 per year going forward. If you are in the early stages of saving and expect to pay private high school tuition, opening a Coverdell now may be smarter than a 529.

What if the 529 money is not used by the time my child finishes college?

You can change the beneficiary to another family member — a younger sibling, cousin, niece, or nephew — without penalty or tax. The money stays in the account and continues to grow tax-free. If no family member needs it, you can withdraw it, but earnings will be taxed and penalized.

Does a 529 penalty apply if I withdraw for any reason other than education?

Yes. Any withdrawal that is not for a may have access to education expense triggers the 10 percent penalty on earnings. The only exceptions are death or disability of the beneficiary, and the new 529-to-Roth rollover option for accounts open at least 15 years.