How to Use a 529 Plan to Save State Taxes

You can take money out of that 529 for those K-12 expenses. But if you do, you're going to give up the value of letting those investments sit in their longer growing tax free. One interesting way to leverage these 529 plans though is for families that are using it for private school. It could be a way to get a little bit of a tax break for something that you were already paying for anyways.