Can I Use 529 Funds For Room And Board

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

Can i use 529 funds for room and board.

January 29 2020. Using a 529 plan to pay 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 a college student living off campus pay for it with qualified 529 plan distributions since the room and board payments aren t for on campus housing. Tuition and fees are considered required expenses and are allowed but when it comes to room and board the costs can t exceed the greater of the following 2 amounts.

Off campus housing and rentals are qualified up to the cost of room and. 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. Room and board. Room and board costs make up a large portion of a student s total college bill second only to tuition you can use a 529 plan to pay for room and board but only if certain requirements are met.

Is the cost of off campus room and board a qualified expense for 529 distributions. Can 529 plan funds pay for a college student s off campus room and board. Room and board includes the cost of housing and the cost of a meal plan. 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.

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

While funds from a 529 account can be used to pay for expenses required for college not all expenses qualify.