529 Bright Start, High School Tuition
Hi Terry – So I know in 2018 the federal government passed a law that the 529 plan could be used for high school tuition. However I was told that Illinois has not “Accepted” this and you are unable to get the state tax break if the Bright Start 529 plan is used for high school tuition. Is this correct? Should I be putting money in the 529 plan for both high school and college or should i open an education IRA for high school and 529 for post high school expenses?
Terry Says
I don’t know how old your children are, but I would just SAVE any money you can for high school, and use the 529 for college. That’s the real burden –and that gives you the time to really make the money grow, which is what the 529 plan is all about.
And yes, some states, including Illinois, are not setting up their plans for high school withdrawals. Very complicated for them, and not worth it –given the long-term nature of a 529.
