But there are ways to make a private K-12 education affordable.
Some schools in big cities such as New York and California charge upwards of $30,000 per year.
Many private school families dont pay those prices, though.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
you’re able to use up to $10,000 annually from a 529 account to cover K-12 expenses.
But first, check your state rules.
Some states have not yet opted to follow new federal rules, Bambridge says.
A 529 Savings Plan allows you to invest tax-free as long as your withdrawal is used on qualified expenses.
Its similar to a 401(k) or IRA but is specifically for education, Bambridge says.
It is relatively easy, and anyone can contribute to anyones 529.
The money must go toward qualified expenses, which include tuition, fees, books and supplies.
In general, Coverdells have faded in popularity because of the greater flexibility of 529s.
State-by-State Discounts
Some states offer their own private school discounts, Bambridge says.
In Louisiana, the state offers up to $5,000 per dependent for K-12 Louisiana-based private schools.
Checkhereto see whats offered in your state.
Roth IRA
This is an individual retirement account that allows qualified withdrawals tax-free for eligible expenses.
In 2021, annual contributions are limited to $6,000 (or $7,000 if youre over 50).
So if you invest $5,000 for 15 years, you could take out $75,000 tax-free.
This is because many schools offer financial aid on a sliding scale.
Most private schools use theNational Association of Independent Schools Parents Financial Statementto assess financial aid needs.
Are there extenuating circumstances?
This is where you might explain.
Same child, same parents, same income, very different results.
It all comes down to the slot the school needs to fill.
This could be: racial, ethnic or religious diversity, or a parents profession.
Or maybe your child is a firecracker whom the school believes will make them look good eventually.
Perhaps your child excels at an out-of-school activity that could also bring positive attention.
Is he a great trumpet player?
Is he a natural speller who could be a spelling bee champion?
These programs use public education dollars to give families to use toward private school costs.
Every state has different rules.
Some states require students to take a test to receive a voucher.
To see if your state has a voucher program, clickhere.
Danielle Braff is a contributor to The Penny Hoarder.
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