In CA, can you use an entire 529 withdrawal for private high school tuition? Or just the contribution and the earnings are taxable?Federally, neither are taxable correct?

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April 12, 2024
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AmyC

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No the 529 isn't eligible in CA with possible penalties. The federal allows the 529 for high school.

Using 529 Savings Plans for Private School Tuition - Saving for College states:

Although California residents can access the same federal tax benefits of using a 529 for high school, their state tax will be adversely affected. California considers 529 withdrawals for secondary school tuition a non-qualified distribution and even imposes a penalty.

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wkassin

Can you please provide details on how penalties are calculated, to both contributions and earnings in the state of CA if a 529 is used for private high school tuition.

wkassin

Can you please provide details on how penalties are calculated, to both contributions and earnings in the state of CA if a 529 is used for private high school tuition.