The Student Empowerment Act lets families use savings from 529 accounts for a wider range of educational expenses for kindergarten through 12th grade, making it easier to afford schooling options.
Student Empowerment Act This bill expands the education-related expenses that may be paid for with tax-free distributions from a qualified tuition program (also known as a 529 plan) to include certain expenses related to elementary, secondary, and homeschool education. Under current law, distributions from a 529 plan are excluded from gross income if they are used to pay for qualified higher education expenses, which includes up to $10,000 (per year and per beneficiary) for tuition at an elementary or secondary public, private, or religious school. The bill expands the education-related expenses that may be paid for with tax-free distributions from a 529 plan to include tuition related to homeschooling and the following expenses related to elementary, secondary, and homeschool education:curriculum and curricular materials, books or other instructional materials, online educational materials, tutoring or educational classes outside the home, testing fees, fees for dual enrollment in an institution of higher education, andeducational therapies for students with disabilities.
1. This bill allows families to use 529 accounts for K-12 educational expenses. 2. Eligible expenses include tuition, books, and online educational materials. 3. Families can also pay for tutoring and educational therapies for students with disabilities. 4. The bill supports homeschooling by including related educational costs. 5. These changes take effect for distributions made after the bill is enacted.