![]() ![]() You can look up eligible schools using the Department of Education’s federal school code database, or ask the school if it is eligible.Ī student doesn’t need to attend full-time to use 529 money for tuition, fees and required books and supplies. and some colleges outside of the U.S., too, says Mary Morris, chairman of the College Savings Foundation and CEO of the Virginia 529 College Savings Plan. That includes virtually all accredited postsecondary institutions in the U.S. Money from the account can be used at any college, university, vocational school or other postsecondary educational institution that’s eligible to participate in a student aid program administered by the U.S. Can I withdraw money from her 529 for her tuition and other expenses, or does she have to attend a four-year college to be eligible? Also, does she need to be a full-time student to qualify?Ī: You can use your 529 savings to pay eligible expenses at a community college. Q: I read your Ask Kim column on about 529 withdrawals for a computer and had a question about eligible expenses. If you have any questions on college planning or what may qualify as an eligible expense, please do not hesitate to reach out.Home Tribune Premium Content Business & Personal Finance Personal Finance Your Money from Kiplinger Ask Kim: Can I use 529 college savings money for community college? Ask Kim: Can I use 529 college savings money for community college? Your Money from Kiplinger March 13, 2016 In this instance, you would just let it sit as a legacy gift of sorts for your descendants. Or (and this is a favorite of mine), it can be used for your child’s eventual children. If there is still money left in a 529 plan after your child goes through school, the funds can be used for another family member. Health insurance, even the policy offered by the school.Transportation, such as travel to and from campus.$10,000 worth of annual K-12 tuition, though the same word of caution above applies.A word of caution: some states may try to reclaim a tax credit or deduction if used for this purpose. Student loan repayments up to $10,000.Technology items, such as computers, printers, software, and internet access.If you are living off campus, the max that can be reimbursed is the school listed room & board estimate. So, what are eligible expenses that can be classified as tax qualified distributions? The average plan balance also hit a high at $28,679, meaning on average, each person with a plan has saved enough to cover one year of college for their beneficiary (usually a child or grandchild).Ī quick reminder: all growth from earnings and price appreciation in a 529 can with withdrawn tax-free if it is withdrawn to pay for eligible education expenses. ![]() Total plan assets increased 18% to a record high of $394 billion through a combination of contributions and market returns. (Source: )Īccording to Forbes, the balance across all 529 plans hit an all-time high at the end of 2020. Costs have nearly tripled over the past 20 years. For private universities, a student spends on average $53,949/year. The average cost of one academic year for in-state universities across the nation is $25,615. And with that, the bills from the bursar’s office will start flooding in. Across the country, students are heading back to colleges in droves.
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