Can I Use 529 Plan For Room And Board

The question you didn t ask maybe because you already know the answer is.

Can i use 529 plan for room and board.

Does this expense count as eligible room board for the 529 plan income exclusion. You may exclude your actual cost or the school s aid allowance whichever is less. While investors can use 529 funds to pay for a college s room and board fees housing arrangements off campus also count. But not the amount he actual pays you.

And the college doesn t have to be a four year institution. Off campus housing and rentals are qualified up to the cost of room and. For the first two years she stayed in the dormitory. 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.

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

Criteria for room and board as a qualified distribution. Always try to pay room and board expenses directly to the university or landlord with a distribution check from the plan. Room and board. Whether you live on campus or off you can use your 529 plan spending for your room and board expenses.

The answer is yes. Like some families you may choose to pay the school directly from your 529. It s important that withdrawals you take from your 529 savings account match the payment of qualifying expenses in the same tax year. Using a 529 plan to pay room and board.

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