Can I Use 529 Plan For Room And Board

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.

Can i use 529 plan for room and board.

Is the cost of off campus room and board a qualified expense for 529 distributions. Decide how to withdraw the funds. But if you are using your 529 plan for room and board expenses it s smart to keep those receipts. But not the amount he actual pays you.

My client has been using 529 plan distributions to pay for part of his daughter s college education costs including 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. Like some families you may choose to pay the school directly from your 529. Whether you live on campus or off you can use your 529 plan spending for your room and board expenses.

Off campus housing and rentals are qualified up to the cost of room and. 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. Does this expense count as eligible room board for the 529 plan income exclusion. Required textbooks and supplies.

Room and board. And the college doesn t have to be a four year institution. For the first two years she stayed in the dormitory. Using 529 college savings plan money for part time students even room and board counts as an eligible expense for half time students.

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. 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. You may exclude your actual cost or the school s aid allowance whichever is less. Criteria for room and board as a qualified distribution.

While investors can use 529 funds to pay for a college s room and board fees housing arrangements off campus also count. Using a 529 plan to pay room and board. 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.