Big News for Families:
Your 529 Savings Is More Powerful Than Ever!
You can now use your 529 savings plan to pay for tutoring, ACT/SAT test prep, and college counseling at Breakaway Prep.
Recent tax law changes now allow you to use your 529 education savings plan to pay for Breakaway Prep services. The dollars you’ve been saving for years can start working for your student right now—raising their SAT/ACT scores, helping them craft standout essays, and strengthening their college applications.
Why This Matters for Your Family
- Tax-free growth & withdrawals — 529 contributions grow tax-free, and qualified withdrawals are tax-free at federal and state levels.
- State tax benefits too — New Jersey offers tax deductions for 529 contributions, multiplying your savings.
- All Breakaway services qualify — SAT/ACT prep, AP tutoring, and college counseling.
- Simple and flexible billing — One payment into your Breakaway account creates a balance you can draw down over time.
How It Works
Check with your 529 provider
Confirm tutoring and college counseling are covered and ask about their reimbursement process. Parents must confirm eligibility with their 529 plan administrator.
Fund your Breakaway Prep account
At your instruction, your 529 carrier will send a check to Breakaway Prep. Then notify Breakaway Prep’s accounting team that you intend to use your 529 plan to pay for Breakaway services.
Breakaway Prep services draw down your balance
Tutoring sessions, prep classes, or college counseling meetings will lower your Breakaway Prep account balance as you go. You’ll receive a monthly email with your updated account balance information.
Share your invoice
Provide your monthly Breakaway Prep invoice to your 529 carrier if requested. Note: Some 529 plans require reimbursement, while others allow direct payment. Parents must confirm which applies to them with their plan administrator.
Important Note
Families are responsible for confirming eligibility and submitting reimbursement requests with their 529 provider. Breakaway Prep will provide detailed receipts and account statements each month but does not work directly with 529 administrators.
Disclaimer
This information is intended to help families understand how 529 plans may be used with Breakaway Prep services. It is not tax, financial, or legal advice. Rules and interpretations can vary by state and by 529 provider, so please confirm details with your plan administrator. We encourage you to consult your own financial advisor, tax professional, or attorney before making any decisions about your 529 account.