For years, the 529 plan was viewed as a college-only savings tool, designed to help parents set aside money for future tuition and related higher education costs.
That changed with the passage of the OBBBA in July 2025, which expanded the range of qualified K– 12 education expenses. Under this update, professional academic tutoring became part of what 529 funds can cover when specific requirements are met.
Parents can now access up to $20,000 per year from a 529 plan for qualified K-12 education expenses, including certain tutoring services.
With this in mind, we’ll break down what exactly changed in the 529 plan, what it means for your education savings, and how you can use your 529 funds for math tutoring at Mathnasium.
A 529 plan is a tax-advantaged education savings account designed to help families set aside money for a child’s education. Funds contributed to a 529 plan can grow over time, and when they are used for qualified education expenses, withdrawals are tax-free at the federal level.
Originally, 529 plans were created to cover college costs, such as tuition, fees, room, and board. For families, that usually meant opening an account early and not touching it until a student finished high school.
As education needs changed, so did the rules. In July 2025, federal legislation, often referred to as the One Big Beautiful Bill Act (OBBBA), expanded how 529 funds can be used.
These updates allowed 529 plans to cover a broader range of K-12 education expenses, including certain instructional services such as tutoring, when specific requirements are met.
At the time of the OBBBA update in July 2025, the annual limit for qualified K-12 expenses stood at $10,000 per student. As of January 2026, that limit doubled to $20,000 per student.
In practical terms, a 529 plan is built to support long-term education planning, which includes programs like Mathnasium. For families, it helps to understand two things:
Tax advantages: Money in the account grows without being taxed, and qualified withdrawals remain tax-free at the federal level.
Who can use it: Parents, grandparents, and other caregivers can open and contribute to a
529 plan on a child’s behalf.
One final piece to keep in mind: 529 plans are administered at the state level, so the specifics can vary depending on where you live and which plan you invest in.
Some states offer additional tax benefits, while others follow the federal guidelines more closely. It's important to check how your state handles contributions and withdrawals before making any decisions.
⬛ Use Your 529 Plan for Math Tutoring at Mathnasium
Not all K-12 education costs are 529-eligible. Eligibility depends on how the service is structured and what documentation supports it.
Under current federal rules, 529 funds can be used for the following K-12 expenses when specific requirements are met:
School tuition: Tuition for private, public, or parochial K-12 schools can qualify, as long as total withdrawals stay within the annual limit.
Tutoring and instructional services: Certain tutoring programs may qualify when they are structured as educational instruction and meet federal requirements.
Online educational programs: Instructional learning platforms and online programs can qualify when they are clearly educational in nature.
Curriculum materials and supplies: Books, curriculum materials, and required supplies may qualify when used in approved educational settings.
Special education services: Services tied to documented educational needs can qualify when they are part of an educational plan.
Some costs are not covered, even if they support learning:
Childcare or supervision: General care or supervision does not count as a qualified education expense.
Informal or undocumented tutoring: Cash payments, informal arrangements, or services without clear documentation do not qualify.
Non-instructional services: Programs without a defined instructional purpose fall outside the scope of eligible expenses.
This update opens a new way to think about education savings, with three key benefits for families:
Reduce out-of-pocket costs: For families already investing in a 529 plan, this update means education savings can do more without requiring additional financial commitment. Instead of adding tutoring to your monthly budget, your 529 savings could help offset the cost.
Support your child's academic growth today: Math skills build on each other. The earlier gaps are addressed, the better positioned your child is for advanced coursework, competitive exams, and college readiness.
Your 529 savings may now cover K-12 tutoring, reducing out-of-pocket costs while supporting your child's academic growth today.
Mathnasium is a math-only learning center trusted by over one million parents across the U.S. and beyond.
Our programs provide structured, academic K-12 math instruction that meets the core criteria many 529 plans use when evaluating tutoring expenses.
Behind each of our programs is the Mathnasium Method™, a proprietary teaching approach based on personalized learning plans and interactive teaching techniques. Our specially trained tutors deliver face-to-face math instruction in a supportive and fun setting, helping students:
Improve math confidence and grades: Through personalized instruction designed around how each student learns best, Mathnasium helps students build a deeper understanding of math that translates into better classroom performance and higher test scores.
Prepare for competitive academic settings and advanced coursework: From honors classes to competitive academic programs, success in advanced settings demands more than memorization. Mathnasium builds the problem-solving and critical thinking skills students need to meet those demands.
Increase school admission and scholarship opportunities: Math accounts for a substantial portion of college entrance exam scores and plays a direct role in GPA and merit-based scholarship eligibility. Students who develop solid math foundations during their K-12 years are better positioned to access the schools and opportunities they are aiming for.
If your 529 plan covers tutoring, Mathnasium is a program built to make that investment count.
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Families considering using their 529 funds for math tutoring at Mathnasium can take these three steps:
Start by contacting your 529 plan administrator to confirm whether tutoring qualifies as an eligible expense under your plan and state rules.
Requirements can vary by state and plan, so confirming eligibility upfront helps avoid any unexpected issues down the line.
Your local Mathnasium Center Director is ready to support you through the process. They can provide receipts, invoices, or program details your plan administrator may require to verify that tutoring expenses meet your plan's eligibility criteria.
Once eligibility is confirmed, enroll at your nearest Mathnasium center and submit your tutoring expenses to your 529 plan for reimbursement. Your Center Director can guide you through any remaining documentation your provider may need.
📕 Speak to Your Local Mathnasium Center
Please note: Mathnasium provides structured, academic K-12 math instruction — meeting the core criteria many 529 plans use when evaluating tutoring expenses. As a result, Mathnasium may be eligible for reimbursement under certain 529 plans, depending on your state and plan details. Eligibility and reimbursement rules vary by plan and state. Families should confirm details with their 529 plan provider. Mathnasium does not provide tax, legal, or investment advice.
(423) 521-6284
(423) 521-6284
