Can I Use 529 Plan For Room And Board

My client has been using 529 plan distributions to pay for part of his daughter s college education costs including room and board.

Can i use 529 plan for room and board.

Decide how to withdraw the funds. Like some families you may choose to pay the school directly from your 529. For the first two years she stayed in the dormitory. Whether you live on campus or off you can use your 529 plan spending for your room and board expenses.

While investors can use 529 funds to pay for a college s room and board fees housing arrangements off campus also count. Is the cost of off campus room and board a qualified expense for 529 distributions. 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.

Always try to pay room and board expenses directly to the university or landlord with a distribution check from the plan. Using 529 college savings plan money for part time students even room and board counts as an eligible expense for half time students. 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. The question you didn t ask maybe because you already know the answer is.

You may exclude your actual cost or the school s aid allowance whichever is less. And the college doesn t have to be a four year institution. The answer is yes. Does this expense count as eligible room board for the 529 plan income exclusion.

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. It s important that withdrawals you take from your 529 savings account match the payment of qualifying expenses in the same tax year. But not the amount he actual pays you. 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.

Room and board. But if you are using your 529 plan for room and board expenses it s smart to keep those receipts. 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.