New 529 Plan Flexibility Allows Strategic Planning for Tutoring and Test Prep

For years, families have asked if they can use 529 plan funds to pay for tutoring and academic support. The answer has always been no — until now. 

Under the current administration’s One Big Beautiful Bill Act, families can now use 529 plans beyond college tuition and room & board to cover K-12 educational expenses, including tutoring services and test prep for the SAT, ACT, and AP exams (CNBC). This update positions tutoring and test prep services as not only valuable services but also smart, forward-looking investments in a child’s future. 

Academic support is a multi-year journey, offering students and families greater confidence and less stress during the college admission process. With the updated 529 withdrawal rules, families can plan to mitigate both financial and logistical stress. Plus, for parents who have more money saved in their child's 529 than they will ultimately need for tuition alone, this update provides them with a meaningful way to repurpose those funds.

LogicPrep Founder & CEO Lindsay notes that the college admissions journey starts earlier than many families realize. Academic support and test prep are key components of this journey and help students have stronger foundations for success. With early investment in 529 plans, families now have flexible options to use those funds to maximize their children’s opportunities. 

Further, as many highly selective universities reinstate testing policies, LogicPrep recommends SAT and ACT prep to all clients. We encourage students to take a diagnostic SAT and ACT test at the end of sophomore year, followed by individualized, data-driven plans to support their goals. Additionally, for test-optional schools, our College Advisors collaborate with our test prep team to determine the most strategic approach when it comes time to decide whether to submit scores.

Early planning and proactive decision making are the foundation for success in the college admission process. With the updated 529 plan rules, families now have more opportunities to align their early financial planning with tutoring services to maximize their children’s opportunities for success and less stress along the way.