Can I Use 529 Plan For Room And Board

Paying for off campus housing with a 529 plan your student s room and board could be covered tax free for an entire 12 month lease even if he or she only takes classes for nine months of the year.

Can i use 529 plan for room and board.

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. 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. Always try to pay room and board expenses directly to the university or landlord with a distribution check from the plan. Required textbooks and supplies.

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. Using 529 college savings plan money for part time students even room and board counts as an eligible expense for half time students. But not the amount he actual pays you. You may exclude your actual cost or the school s aid allowance whichever is less.

My client has been using 529 plan distributions to pay for part of his daughter s college education costs including room and board. But if you are using your 529 plan for room and board expenses it s smart to keep those receipts. For the first two years she stayed in the dormitory. Using a 529 plan to pay room and board.

It s important that withdrawals you take from your 529 savings account match the payment of qualifying expenses in the same tax year. 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. While investors can use 529 funds to pay for a college s room and board fees housing arrangements off campus also count. Decide how to withdraw the funds.

Off campus housing and rentals are qualified up to the cost of room and. Does this expense count as eligible room board for the 529 plan income exclusion. The question you didn t ask maybe because you already know the answer is. Room and board.

Is the cost of off campus room and board a qualified expense for 529 distributions. The answer is yes. Like some families you may choose to pay the school directly from your 529.