The House and Senate are working to reconcile a proposed tax reform bill, which includes a section that would expand 529 allowable educational expenses to include K-12 tuition. http://news.morningstar.com/articlenet/article.aspx?id=839310
How does this differ from a Coverdell?
I don’t know if states give tax credits for Coverdell accounts, and I know for me the big benefit on putting money into a 529 and getting to use it almost immediately for k-12 would have been the state tax deduction.
The income limit on Coverdells restricted who can use them. And the maximum fee-free contributions of $2,000 meant lower overall dollars available for expenses.
I wonder if this is going to increase the cost of K-12 tuition.
^^ why would it? How would the schools even know where the money is coming from to pay the tuition?
Logically it should lower the net cost of tuition since appreciation is in tax free accounts. More demand = increased prices.
One possible good outcome of the revised tax plan : http://www.thinkadvisor.com/2017/11/03/gop-tax-bill-bolsters-529-plans