Room And Board Expenses 529 Plan

Using your 529 plan to pay for room and board room and board costs make up a large portion of a student s total college bill second only to tuition.

Room and board expenses 529 plan.

The caveat here is that your off campus housing costs can t be higher than you d pay to live on campus if you want to use 529 funds. Now college is closer and it s time to think about spending the money you ve put aside. Students who live off campus are limited. As of 2012 529 plan funds could be used to cover room and board expenses up to the actual amount charged to the student if they reside in campus housing.

You can use a 529 plan to pay for room and board but only if certain requirements are met. Room and board includes the cost of housing and the cost of a meal plan. A 529 plan only covers expenses that are related to post secondary education see below for using a 529 plan for elementary education. Required textbooks and supplies.

While you absolutely can use 529 college savings plans to pay for room and board expenses taking a few precautions will make it easier for you come tax time. Yes the cost of off campus room and board may be a qualified education expense for 529 plans if certain criteria are met. Qualified expenses that 529s cover a tax advantaged 529 college savings plan can be used to pay for college but not all expenses qualify. Room and board whether you live on campus or off you can use your 529 plan spending for your room and board expenses.

Withdrawals from 529 plans are called distributions and. You can spend up to 10 000 from a 529 plan on tuition expenses for elementary middle or high school. Year after year you and your child have been saving for college through a 529 savings account. A student does not have live on campus or in college approved housing for room and board to qualify as an education expense.

The room and board expenses must be incurred while the student is enrolled at a college or university that is eligible for title iv federal student aid. Always try to pay room and board expenses directly to the university or landlord with a distribution check from the plan. Criteria for room and board as a qualified distribution you can use a 529 plan distribution to pay for a student s room and board expenses if the student is enrolled at least half time. If the student lives off campus qualified room and board costs are limited to what is included in the college s cost of attendance coa allowance for room and board for the period.