The two main college savings accounts, 529 savings plans and Coverdell Education Savings Accounts, or ESAs, both remain in the revised tax code. These accounts provide a tax-advantaged way for parents and other relatives to save and invest money for educational expenses such as tuition, fees, books, and certain other qualifying expenses. While there’s no deduction for contributions to these accounts on federal tax returns, any money these accounts earn from investments can be withdrawn tax-free when used for a qualified expense.
However, a change was made to 529 savings plans to allow use of the funds for qualifying educational expenses at any level, not just for college. This was already the case with Coverdell ESAs.
As one potential example, if you end up sending your child to a private high school, you could potentially use funds from their 529 savings plan to help pay for it.