Proposal Increasing Limitation on K-12 Tuition Introduced

Senator Eric Schmitt (R-MO) has introduced S. 2206, to increase from $10,000 to $20,000 the maximum amount that can be used from a 529 plan for tuition in connection with a designated beneficiary’s enrollment at an eligible elementary or secondary school.

The 2017 Tax Cuts and Jobs Act permits parents to withdraw up to $10,000 per beneficiary each year to use for qualifying K-12 expenses. Those expenses include public, private and religious schooling. Data from the National Center for Education Statistics indicates that average tuition charged for private elementary and secondary enrollment in 2021 was $12,790.