529 plan use in 2018 - Homeschooling
529 plan use in 2018 - Homeschooling
I'm trying to figure out if I can tap 529 plan funds in 2018 for homeschooling (K-12) purposes, and if so, what qualifies.
Assuming that one can actually do this, would textbooks used to teach students qualify? Computers? Supplies?
Assuming that one can actually do this, would textbooks used to teach students qualify? Computers? Supplies?
Re: 529 plan use in 2018 - Homeschooling
I thought homeschooling was removed from the legislation that finally passed.
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Re: 529 plan use in 2018 - Homeschooling
As a former home schooler, my guess is you can use the 529 funds if you buy an actual curriculum. Also as you likely know, if you are not un-schooling you can just pay for an on-line home schooling academy which is likely covered as it really is just a private school.
And in terms of teachers guides, most of the curriculum we saw have an all inclusive price for teacher and student texts sold as a package. Sadly we just gave away our K-8 curriculum or we would have sent it to you : ( As a point, very little changes in terms of K-8 curriculum, so you can use older materials and just work in topical stuff if you so wish.
By the way. our experience is, if you go with a quality curriculum, K-8 is sufficient to allow your children to enter college. Generally they will require a proficiency test, but our children were able to do collegiate work at age 14 and graduated in STEM 4.0/4.0. I point this out as you might want to target that and preserve some resources for college.
And in terms of teachers guides, most of the curriculum we saw have an all inclusive price for teacher and student texts sold as a package. Sadly we just gave away our K-8 curriculum or we would have sent it to you : ( As a point, very little changes in terms of K-8 curriculum, so you can use older materials and just work in topical stuff if you so wish.
By the way. our experience is, if you go with a quality curriculum, K-8 is sufficient to allow your children to enter college. Generally they will require a proficiency test, but our children were able to do collegiate work at age 14 and graduated in STEM 4.0/4.0. I point this out as you might want to target that and preserve some resources for college.
Re: 529 plan use in 2018 - Homeschooling
Officially homeschooling was left out of the 529 plan at the last minute.
However, since some states define homeschools as private schools it remains to be seen whether they will be able to exclude it. It's complicated when students get hybrid education- e.g. part online charter school, part homeschooling, or private school for some classes and not others, ect.
If you are in a state that has *some* homeschools as private schools (like California, I think?), it may hinge on whether you use the homeschool or the private school option.
Computers are allowable as 529 expenses, if you are enrolled in college (as of 2015, Congress passed PATH which permitted this, judging from 529 website info). I strongly suspect the number of classes isn't relevant, so if you have a high schooler who is taking one online college class, you're probably good. Other cases I wouldn't vouch for.
"Supplies" may vary- I would not bet on those being covered.
I predict a proliferation of umbrella "private school" organizations that will provide you with a packaged curriculum and perhaps other supplies, calling the fees for it "tuition", to facilitate 529 coverage, but I'm not aware of any marketing themselves as such yet. Of course as a Boglehead I can't help but note that unschooling can be done very cost-effectively, such that for many students you won't have enough expenses to deduct. If we were homeschooling we wouldn't need 529 deductions, and we'd save the money for college/postgrad.
However, since some states define homeschools as private schools it remains to be seen whether they will be able to exclude it. It's complicated when students get hybrid education- e.g. part online charter school, part homeschooling, or private school for some classes and not others, ect.
If you are in a state that has *some* homeschools as private schools (like California, I think?), it may hinge on whether you use the homeschool or the private school option.
Computers are allowable as 529 expenses, if you are enrolled in college (as of 2015, Congress passed PATH which permitted this, judging from 529 website info). I strongly suspect the number of classes isn't relevant, so if you have a high schooler who is taking one online college class, you're probably good. Other cases I wouldn't vouch for.
"Supplies" may vary- I would not bet on those being covered.
I predict a proliferation of umbrella "private school" organizations that will provide you with a packaged curriculum and perhaps other supplies, calling the fees for it "tuition", to facilitate 529 coverage, but I'm not aware of any marketing themselves as such yet. Of course as a Boglehead I can't help but note that unschooling can be done very cost-effectively, such that for many students you won't have enough expenses to deduct. If we were homeschooling we wouldn't need 529 deductions, and we'd save the money for college/postgrad.
Re: 529 plan use in 2018 - Homeschooling
You are correct.
This isn't just my wallet. It's an organizer, a memory and an old friend.
Re: 529 plan use in 2018 - Homeschooling
Can I pay for *foreign/non-US* pre school thru k12 from 529? I cannot get a clear answer on this. Anyone knows ? Tnx.
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Re: 529 plan use in 2018 - Homeschooling
As someone who was homeschooled, I would recommend not doing this, and not for the academic reasons. There is a lot more to life than graduating college at age 17.MrPotatoHead wrote: ↑Sun Feb 18, 2018 5:40 pm By the way. our experience is, if you go with a quality curriculum, K-8 is sufficient to allow your children to enter college. Generally they will require a proficiency test, but our children were able to do collegiate work at age 14 and graduated in STEM 4.0/4.0. I point this out as you might want to target that and preserve some resources for college.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."
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Re: 529 plan use in 2018 - Homeschooling
As they say, your mileage may vary. We are 4 for 4. All four of our children started college at 14-15 years of age, all graduated in STEM areas, 3 of the 4 are actual professionals, and all plan on unschooling their own children as we did. By unschooling I mean we used a modified Montessori approach to education.triceratop wrote: ↑Mon Feb 19, 2018 3:12 pmAs someone who was homeschooled, I would recommend not doing this, and not for the academic reasons. There is a lot more to life than graduating college at age 17.MrPotatoHead wrote: ↑Sun Feb 18, 2018 5:40 pm By the way. our experience is, if you go with a quality curriculum, K-8 is sufficient to allow your children to enter college. Generally they will require a proficiency test, but our children were able to do collegiate work at age 14 and graduated in STEM 4.0/4.0. I point this out as you might want to target that and preserve some resources for college.
I think there is a lot to be said for entering the workforce young, trying to get to 6 figures by the time you are 22 or so, saving and investing profusely while young, and then letting the financial momentum carry you to your goals and fund the lifestyle you wish to enjoy.
But as you point out, not every one has the same experience. Our kids seemed to have greatly enjoyed the journey.
Cheers..
Re: 529 plan use in 2018 - Homeschooling
Came across news on 529 for K12 private tuition up to $10,000 per year per student. I have a kid going to private school and have superfunded 529 in place which has lived through a bull market with healthy 20% gains. (100,000 cost basis and 120,000 current value).
Let’s say I withdraw 10,000 this year from 529 to pay kids private school tuition. What’s my net benefit.
Assumptions:
Fidelity NH 529 Plan (Age Index)
Cotributions (basis): $100,000
Current Value: $120,000
Federal Tax: 39%
State of residence: WA (no state taxes)
My understanding is:
Year 2018:
Withdraw $10,000 from 529
Fidelity 1099-Q with 8,333 (basis), $1,667 (earnings)
$1,667 tax free earnings in 2018
It will take 10 years of withdrawals ($10k/yr) to use all my earnings in 529 account tax free?
Let’s say I withdraw 10,000 this year from 529 to pay kids private school tuition. What’s my net benefit.
Assumptions:
Fidelity NH 529 Plan (Age Index)
Cotributions (basis): $100,000
Current Value: $120,000
Federal Tax: 39%
State of residence: WA (no state taxes)
My understanding is:
Year 2018:
Withdraw $10,000 from 529
Fidelity 1099-Q with 8,333 (basis), $1,667 (earnings)
$1,667 tax free earnings in 2018
It will take 10 years of withdrawals ($10k/yr) to use all my earnings in 529 account tax free?
Emergency: FDIC |
Taxable: VTMFX |
Retirement: TR2040
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Re: 529 plan use in 2018 - Homeschooling
MrPotatoHead wrote: ↑Mon Feb 19, 2018 4:52 pm...our experience is, if you go with a quality curriculum, K-8 is sufficient to allow your children to enter college. Generally they will require a proficiency test, but our children were able to do collegiate work at age 14 and graduated in STEM 4.0/4.0. I point this out as you might want to target that and preserve some resources for college.
triceratop wrote: ↑Mon Feb 19, 2018 3:12 pmAs someone who was homeschooled, I would recommend not doing this, and not for the academic reasons. There is a lot more to life than graduating college at age 17.
MrPotatoHead,MrPotatoHead wrote: ↑Sun Feb 18, 2018 5:40 pmAll four of our children started college at 14-15 years of age, all graduated in STEM areas, 3 of the 4 are actual professionals, and all plan on unschooling their own children as we did. By unschooling I mean we used a modified Montessori approach to education.
1. Did you design the quality K-8 modified-Montessori curriculum you used? Or is there one out there you used and recommend?
2. Did your children encounter any (maturity or otherwise) issues in being 3-4 younger than most of their college classmates?
3. Did (any of) your children graduate from college after fewer than four years in college?
4. Did any of your 3 professional children aim/succeed to enroll professional school after having completed Only professional school prerequisites still without a college degree?
Triceratop,
Are you here recommend against any homeschooling or against accelerated homeschooling?
Thank you both of you.
Lt. Columbo: Well, what do you know. Here I am talking with some of the smartest people in the world, and I didn't even notice!
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Re: 529 plan use in 2018 - Homeschooling
I replied privately to your query privately so no to bore the forum and to keep some details a bit more private.Lieutenant.Columbo wrote: ↑Fri Apr 06, 2018 6:04 amMrPotatoHead,MrPotatoHead wrote: ↑Sun Feb 18, 2018 5:40 pmAll four of our children started college at 14-15 years of age, all graduated in STEM areas, 3 of the 4 are actual professionals, and all plan on unschooling their own children as we did. By unschooling I mean we used a modified Montessori approach to education.
1. Did you design the quality K-8 modified-Montessori curriculum you used? Or is there one out there you used and recommend?
2. Did your children encounter any (maturity or otherwise) issues in being 3-4 younger than most of their college classmates?
3. Did (any of) your children graduate from college after fewer than four years in college?
4. Did any of your 3 professional children aim/succeed to enroll professional school after having completed Only professional school prerequisites still without a college degree?
Thank you both of you.
Last edited by MrPotatoHead on Sun Apr 08, 2018 4:50 pm, edited 3 times in total.
Re: 529 plan use in 2018 - Homeschooling
Please post your reply. I am interested!
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Re: 529 plan use in 2018 - Homeschooling
I am interested too
Re: 529 plan use in 2018 - Homeschooling
Yes me too
Re: 529 plan use in 2018 - Homeschooling
MrPotatoHead, I think you've got groupies now.
Amateur investors are not cool-headed logicians.
Re: 529 plan use in 2018 - Homeschooling
When you file your taxes showing what you did with the 529 distribution, do you need to enter some kind of school code/number? For example, many/most states assign numbers to each school in the K-12 range and to private and online schools as well.
For example, here is the directory for California schools, which includes private and online schools. Hmmm, there are a few "Homeschools" in there too.
For example, here is the directory for California schools, which includes private and online schools. Hmmm, there are a few "Homeschools" in there too.
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Re: 529 plan use in 2018 - Homeschooling
I am a homeschooling (and homeschooled) father of 5 and have been interested in:
1. Whether an ESA or 529 can be used to pay for homeschooling? The answer is no, unless you are in a state that classifies homeschooling as a private school (I don't know the various state rules, but I believe TX, FL, and maybe CA).
2. Whether my FSA can be used to pay for babysitting for our youngest while my wife tutors at our co-op (for which she gets paid)? I think the answer is no to this as well.
3. Whether the paid babysitting can be deducted as a business expense against my wife's 1099 tutoring income? I think maybe.
P.S. I was homeschooled and started (essentially) an apprenticeship at 14 to learn some IT skills. I entered community college at 15, graduated high school at 17, and got an associates degree at 18. I then transferred to University and got a BS and MS in Computer Science. I worked my way through college using the skills I learned at age 14 in the afternoons after completing my schoolwork in the morning.
I mention this not to brag. This education progression was not uncommon in my homeschooled peers. I think kids and young adults can be pushed more than they are. Yes there is more to life than graduating college at 17, but can also be more to being 17 than goofing off with your friends (which I also did plenty of). You need to understand your child's personality and aspirations, and also try to find balance. Don't always push for success, but don't allow too much complacency. I could rant more, but I'll stop .
1. Whether an ESA or 529 can be used to pay for homeschooling? The answer is no, unless you are in a state that classifies homeschooling as a private school (I don't know the various state rules, but I believe TX, FL, and maybe CA).
2. Whether my FSA can be used to pay for babysitting for our youngest while my wife tutors at our co-op (for which she gets paid)? I think the answer is no to this as well.
3. Whether the paid babysitting can be deducted as a business expense against my wife's 1099 tutoring income? I think maybe.
P.S. I was homeschooled and started (essentially) an apprenticeship at 14 to learn some IT skills. I entered community college at 15, graduated high school at 17, and got an associates degree at 18. I then transferred to University and got a BS and MS in Computer Science. I worked my way through college using the skills I learned at age 14 in the afternoons after completing my schoolwork in the morning.
I mention this not to brag. This education progression was not uncommon in my homeschooled peers. I think kids and young adults can be pushed more than they are. Yes there is more to life than graduating college at 17, but can also be more to being 17 than goofing off with your friends (which I also did plenty of). You need to understand your child's personality and aspirations, and also try to find balance. Don't always push for success, but don't allow too much complacency. I could rant more, but I'll stop .
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Re: 529 plan use in 2018 - Homeschooling
I'm sending you a PM. I'd love details.
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Re: 529 plan use in 2018 - Homeschooling
Sending you PM as welltriceratop wrote: ↑Mon Feb 19, 2018 3:12 pmAs someone who was homeschooled, I would recommend not doing this, and not for the academic reasons. There is a lot more to life than graduating college at age 17.MrPotatoHead wrote: ↑Sun Feb 18, 2018 5:40 pm By the way. our experience is, if you go with a quality curriculum, K-8 is sufficient to allow your children to enter college. Generally they will require a proficiency test, but our children were able to do collegiate work at age 14 and graduated in STEM 4.0/4.0. I point this out as you might want to target that and preserve some resources for college.
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Re: 529 plan use in 2018 - Homeschooling
Aaand you. PM'd!objectivefunction wrote: ↑Wed Apr 11, 2018 7:46 am I am a homeschooling (and homeschooled) father of 5 and have been interested in:
1. Whether an ESA or 529 can be used to pay for homeschooling? The answer is no, unless you are in a state that classifies homeschooling as a private school (I don't know the various state rules, but I believe TX, FL, and maybe CA).
2. Whether my FSA can be used to pay for babysitting for our youngest while my wife tutors at our co-op (for which she gets paid)? I think the answer is no to this as well.
3. Whether the paid babysitting can be deducted as a business expense against my wife's 1099 tutoring income? I think maybe.
P.S. I was homeschooled and started (essentially) an apprenticeship at 14 to learn some IT skills. I entered community college at 15, graduated high school at 17, and got an associates degree at 18. I then transferred to University and got a BS and MS in Computer Science. I worked my way through college using the skills I learned at age 14 in the afternoons after completing my schoolwork in the morning.
I mention this not to brag. This education progression was not uncommon in my homeschooled peers. I think kids and young adults can be pushed more than they are. Yes there is more to life than graduating college at 17, but can also be more to being 17 than goofing off with your friends (which I also did plenty of). You need to understand your child's personality and aspirations, and also try to find balance. Don't always push for success, but don't allow too much complacency. I could rant more, but I'll stop .
Re: 529 plan use in 2018 - Homeschooling
MrPotatoHead, I created an account for this site just to request more information about your methods if you are willing to share. I definitely understand the desire for privacy but if you’d be willing to at least mention some of the resources you used or something it would be great to have some sort of resolution to the huge cliff hanger in this thread.MrPotatoHead wrote: ↑Sun Apr 08, 2018 4:40 pmI replied privately to your query privately so no to bore the forum and to keep some details a bit more private.Lieutenant.Columbo wrote: ↑Fri Apr 06, 2018 6:04 amMrPotatoHead,MrPotatoHead wrote: ↑Sun Feb 18, 2018 5:40 pmAll four of our children started college at 14-15 years of age, all graduated in STEM areas, 3 of the 4 are actual professionals, and all plan on unschooling their own children as we did. By unschooling I mean we used a modified Montessori approach to education.
1. Did you design the quality K-8 modified-Montessori curriculum you used? Or is there one out there you used and recommend?
2. Did your children encounter any (maturity or otherwise) issues in being 3-4 younger than most of their college classmates?
3. Did (any of) your children graduate from college after fewer than four years in college?
4. Did any of your 3 professional children aim/succeed to enroll professional school after having completed Only professional school prerequisites still without a college degree?
Thank you both of you.
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Re: 529 plan use in 2018 - Homeschooling
I replied privately.Blueis wrote: ↑Mon May 07, 2018 7:51 am MrPotatoHead, I created an account for this site just to request more information about your methods if you are willing to share. I definitely understand the desire for privacy but if you’d be willing to at least mention some of the resources you used or something it would be great to have some sort of resolution to the huge cliff hanger in this thread.
Excelsior...
Re: 529 plan use in 2018 - Homeschooling
MrPotatoHead, I am trying to PM you but can't seem to do it! Please share the references and/or resources you used with me as well! I'd love to learn more. I actually already plan to home school my two kids during their middle school years, so this information would be very helpful indeed!MrPotatoHead wrote: ↑Sun Apr 08, 2018 4:40 pmI replied privately to your query privately so no to bore the forum and to keep some details a bit more private.Lieutenant.Columbo wrote: ↑Fri Apr 06, 2018 6:04 amMrPotatoHead,MrPotatoHead wrote: ↑Sun Feb 18, 2018 5:40 pmAll four of our children started college at 14-15 years of age, all graduated in STEM areas, 3 of the 4 are actual professionals, and all plan on unschooling their own children as we did. By unschooling I mean we used a modified Montessori approach to education.
1. Did you design the quality K-8 modified-Montessori curriculum you used? Or is there one out there you used and recommend?
2. Did your children encounter any (maturity or otherwise) issues in being 3-4 younger than most of their college classmates?
3. Did (any of) your children graduate from college after fewer than four years in college?
4. Did any of your 3 professional children aim/succeed to enroll professional school after having completed Only professional school prerequisites still without a college degree?
Thank you both of you.
Re: 529 plan use in 2018 - Homeschooling
I too would be interested MrPotatoHead!
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Re: 529 plan use in 2018 - Homeschooling
MrPotatoHead: I would be interested as well if you wouldn't mind another PM
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Re: 529 plan use in 2018 - Homeschooling
I am also interested mrpotatohead