Can I Use 529 Plan For Room And Board

Criteria for room and board as a qualified distribution.

Can i use 529 plan for room and board.

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

But not the amount he actual pays you. 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. Required textbooks and supplies. 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. Off campus housing and rentals are qualified up to the cost of room and. But if you are using your 529 plan for room and board expenses it s smart to keep those receipts. 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.

Like some families you may choose to pay the school directly from your 529. While investors can use 529 funds to pay for a college s room and board fees housing arrangements off campus also count. The question you didn t ask maybe because you already know the answer is. Using 529 college savings plan money for part time students even room and board counts as an eligible expense for half time students.

And the college doesn t have to be a four year institution. The answer is yes. 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. Decide how to withdraw the funds.

Whether you live on campus or off you can use your 529 plan spending for your room and board expenses. Is the cost of off campus room and board a qualified expense for 529 distributions. For the first two years she stayed in the dormitory.