Qualified Room And Board Expenses For 529

Know which expenses qualify.

Qualified room and board expenses for 529.

Most qualified expenses cannot exceed the cost estimates made by the school that the 529 beneficiary will be attending. To be considered a qualified expense your child must be enrolled at least half time. A 529 plan only covers expenses that are related to post secondary education see below for using a 529 plan for elementary education however there are rules. When you pay qualified education expenses from a 529 account your withdrawals are tax and penalty free.

You can also take a 529 plan distribution to cover the cost of room and board. Qualified expenses are amounts paid for tuition fees and other related expense for an eligible student that are required for enrollment or attendance at an eligible educational institution. Money can be withdrawn tax free from. Qualified expenses for a 529 plan.

With a 529 college savings plan investments grow tax deferred and are not taxed when withdrawn to pay for qualified higher education expenses including tuition fees textbooks supplies and equipment required for enrollment special needs services and in some cases room and board costs.