Siena Blog

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Did you know that recent federal changes to qualified education expenses can now give even more help to families of students with learning differences?

Siena is very pleased to highlight how families of students with learning differences can benefit from these federal changes to qualified education expenses.

Expanded K-12 Qualified Expenses

More Support for Learning Needs

A 529 plan is a tax-advantaged savings account designed to help families save for education. Most importantly for families, the new law broadens the uses of 529 plan money in ways that can directly benefit students with learning differences — particularly through expanded K-12 and postsecondary expense definitions.

Families can now allocate up to $20,000 per year from a 529 Savings Plan for private school education costs; this doubles the previous amount and, more importantly, makes saving for education more flexible — and more powerful — for families who support students with learning differences.

In 2025, Congress passed H.R. 1, and it was signed into law on July 4, 2025, bringing significant changes to 529 education savings plans. These changes expand what counts as a qualified education expense, allowing families to use their 529 funds in ways that better support diverse learning needs and paths.

Under the updated rules, 529 plans now cover a wide range of elementary and secondary (K-12) educational costs beyond tuition. Families can begin using 529 funds for these expanded expenses. 529 funds can be used tax-free for:

• Tuition at public, private or religious schools.
• Curriculum and instructional materials, including books and online resources.
• Tutoring or educational classes outside the home — provided the tutor meets specific qualifications (e.g., licensed teacher, former teacher, or subject-matter expert).
• Fees for standardized tests (e.g., SAT, ACT) and dual enrollment in college courses.
• Educational therapies for students with disabilities, such as occupational therapy, behavioral therapy, speech-language therapy, and physical therapy when provided by licensed or accredited practitioners.

There are variations by state for 529 plans so check with your financial services provider or other state-specific resources to be sure (such as this article, Using a 529 Plan To Pay for K-12?).

529 Updates for 2026

529 Accounts Cover More Than You Might Expect

Many students with learning differences benefit from therapeutic interventions or specialized instruction that can be costly — and now, those expenses may qualify as educational expenses for 529 purposes when they meet the law’s requirements. Using tax-free savings for these services can make a meaningful difference in access and affordability.

The updates also expand what counts as a qualified post-secondary expense. Families can now use 529 funds for recognized post-secondary credential programs, which include:

• Tuition, fees, books, and supplies required for credential programs.
• Fees for exams and continuing education needed to obtain or maintain credentials.
• For those who pursue alternative or career-focused education — including vocational certification, licensing, or other credentials — this change makes 529 funds a more flexible and valuable resource.

The H. R. 1 law also made permanent the ability to roll 529 plan funds into an ABLE account, which is a tax-advantaged savings account for individuals with disabilities. This rollover option was previously set to expire, but now families can continue to use this planning tool. ABLE accounts can help cover disability-related expenses without jeopardizing federal benefits, and the ability to transfer funds from a 529 plan to an ABLE account offers a valuable planning option for families supporting long-term needs for students with learning differences.

529 Planning Tips for Families

Increasing Affordability for Specialized Education

To take full advantage of these changes families should consider the following actions:

• Track eligible expenses carefully and ensure tutors and therapy providers meet the law’s requirements.
• Plan distributions strategically to maximize tax-free benefits while coordinating with school services and Individualized Education Programs (IEPs) or 504 plans.
• Consult a tax or financial advisor about how these federal rules interact with state tax treatment and your family’s broader financial plan.

Siena has always been dedicated to helping families navigate the costs of additional academic support and meeting students’ diverse educational needs. The expansion of qualified education expenses under H.R. 1 marks a significant shift in how 529 plans can support students with learning differences. From covering educational therapies to expanding limits and credentialing uses, these changes make 529 savings more practical and impactful for families seeking tailored educational support for students with diverse learning needs.

Learn about Tuition and Affordability at Siena

Resources for Parents

See the additional parents and community resources blog category, including Why Summer Is the Perfect Time to Learn and Maintaining Routines.

Siena’s parent resources page has links to information about your child's education, college preparation, and parental/familial support, among others, to help you navigate the journey.

The Siena School, a national leader in dyslexia education now in its 20th year, serves bright, college-bound students with language-based learning differences on DC Metro area campuses in Silver Spring, MD (grades 3-4 and 5-12) and Oakton, VA (grades 3-12).