Source: The College Investor
No, a 529 plan cannot be used for traditional Montessori School or preschool (at least not as a qualifying expense). However, there are Montessori elementary and high schools that would be eligible, as long as your state’s 529 plan rules allow it.
In the last decade, the amount of qualifying education expenses that are allowed for 529 plans has expanded significantly. 529 plans can now be used for K-12 education tuition, trade schools, and even student loans.
However, even with these expansions, not every state will allow their residents to use the 529 plans beyond college. You need to check your state’s 529 plan rules here.
With that in mind, pre-K expenses are still not considered qualifying expenses for a 529 plan. Only elementary and high school expenses are considered qualifying.
529 Plans And Montessori School
529 plans can only be used for up to $10,000 per year in elementary education tuition. Elementary education is defined by the IRS as:
An eligible elementary or secondary school is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law.
Traditional Montessori school is from ages 2 – 6, which would not be considered elementary education. As such, traditional Montessori school is not considered a qualifying 529 plan expense.
However, there is a growing trends of Montessori education being taught in Elementary and High School (K-12). Elementary education is a qualifying expenses if your state allows it. In this situation, you are allowed to use up to $10,000 per year for tuition only.
Note: Only tuition is a qualifying expense. Other expenses like application fees, supplies, transportation, food programs, and extended day care, are not qualified expenses.
To find out if your state allows K-12 education expenses, use our 529 plan guide or click on your state in the map below:
What About Other Early Education Or Preschool Options?
Only K-12 tuition expenses are allowed as qualifying 529 plan expenses. So early elementary or preschool is NOT considered a qualifying education expense.
This includes preschool, daycare, parenting co-ops, church preschool, and other early education options.
Only elementary expenses (which are kindergarten and higher) are eligible.
