![]() ![]() Your 529 plan administrator keeps track of your contributions and withdrawals. Lifestyle and personal expenses 529 recordkeeping.Club and activity fees, including fraternity & sorority dues.Insurance (including health insurance), even if offered by the school.Transportation costs, including those for study abroad.Technology: computers, computer equipment, software that is required for coursework.Books & supplies that are required for coursework. ![]() Off-campus food and routine utility bills count under room and board as qualified expenses, but again, you must not exceed the allowances determined by the school. Your 529 account earnings are tax-free, as long as the plan withdrawals are used for qualified higher education expenses in the calendar year (not school year) they’re withdrawn, and as long as the beneficiary is enrolled as at least a part-time student at an accredited institution.Īs far as which expenses are qualified, the list is not long:Įxpenses for housing not owned or operated by the school is qualified as long as they don’t exceed the school’s estimates for on-campus room & board. To make the most of that tax favorability, it’s important to understand some basics about the strict 529 withdrawal rules. The thing we all love about 529 plans is their tax favorability for college savings. Be sure to check with your accountant and financial advisor whenever you have questions about your 529 spending. Knowing which expenses are qualified is essential 529 knowledge.
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