I live in Virginia and received employer contributions to setup a College 529 Savings Account. I'm the account holder and my youngest is the beneficiary. My wife and I couldn't get my son into a free pre-k program with before/after care, so we found a private catholic school. It's expensive, but "cheaper" than all other options. We asked Virginia 529 about using the funds to pay for tuition because while online resources indicate that it's for K-12, it also mention religious institutions. Virginia 529 also said that we should ask a tax expert. I know pre-school is not kindergarten and we're being hopeful. But in researching, it appears that anyone can withdraw money from their account and incur a fine/penalty for using the money outside of eligible schools/colleges. What would be the tax implications if we decided to use 10K to pay for tuition? Would that result in a 10% penalty on the 10K plus we'd have to pay taxes on any gains?
Thank you!
