Starting July 2025, federal law expands the types of qualified K–12 expenses eligible for tax-free 529 plan withdrawals. Beyond tuition, families can now use funds for curriculum materials, books, online learning tools, tutoring, dual-enrollment, standardized test fees, and educational therapies for students with disabilities. Then beginning January 1, 2026, the annual K–12 withdrawal limit doubles—rising from $10,000 to $20,000 per beneficiary.

On the contribution side, the annual gift-tax exclusion for contributions to a 529 plan increases to $19,000 per individual (or $38,000 for married couples) in 2025. Additionally, the “superfunding” option allows frontloading five years’ worth of contributions—up to $95,000 per person (or $190,000 for married couples) in a single year without triggering gift taxes.