Launch529

Private school, other religious

Grace Lutheran School

Sleepy Eye, MN · Grades 1 to 8 · 11 students

Can a 529 pay for Grace Lutheran School?

Yes. Federal law lets a 529 plan pay tuition at a private, public or religious elementary or secondary school, up to $20,000 a year per student. Grace Lutheran School is a private school serving grades 1 to 8, so its tuition is the kind of cost this covers.

What a 529 can pay

  • Tuition, up to $20,000 a year per student
  • Curriculum, books and instructional materials
  • Tutoring and classes outside the home
  • Fees for SAT, ACT, AP and other exams
  • Online educational materials
  • Educational therapies for a student with a disability

What it can’t

  • Registration, application and building fees
  • Activity, field trip and technology fees
  • Uniforms, sports and extracurriculars
  • School meals and transportation
  • Aftercare and summer camps

Ask Grace Lutheran School which of its charges are billed as tuition. Fees added to a tuition bill are not always covered.

What Minnesota does with it

The tax rule is your state of residence’s, so this applies if you live in Minnesota.

Minnesota does not follow the federal K-12 rule

Minnesota does not treat K-12 withdrawals from a 529 as qualified. The earnings part is generally taxed as Minnesota income, and a Minnesota deduction you took for contributing may be taken back. Federally the withdrawal can still be tax-free, so the question is whether the benefit is worth the state tax.

General information, not tax advice. Source: Saving for College, which states conform to federal 529 law (Jan. 2026). How it works

Plan and track Grace Lutheran School costs

Add this school to a free plan, see how it fits with college savings, and log each tuition bill, book and test fee so it is checked against the rules and ready for tax time.

More private schools in Sleepy Eye

School details: Sleepy Eye, MN · Private (other religious) · Grades 1 to 8. Source: U.S. Department of Education, National Center for Education Statistics (2021-22). General information, not tax advice.