What Exactly Can You Pay for with a 529 Plan? (Hint: It’s More Than You Think)

College is expensive. But so is kindergarten these days.

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That’s where the 529 plan comes in. It’s a tax-advantaged savings account that helps you pay for school without emptying your savings or your sanity. But here’s the kicker: it’s not just for college anymore.

Whether you’re funding your kid’s future at Harvard or helping them through a trade school, culinary program, or even a private high school, a 529 can help foot the bill.

Let’s break down what your 529 dollars can actually cover (so you don’t end up accidentally buying a PlayStation and calling it “educational software”).

Education Costs You Can Use a 529 For:

1. College & Grad School
   Four-year, two-year, public, private if it’s a post-high-school institution that qualifies for federal student aid, your 529 funds are welcome there.

2. Trade & Vocational Schools (2FA)
   Yes, culinary school counts (thankfully, someone’s gotta keep the soufflés from collapsing). As long as the school is eligible under federal guidelines, you’re good.

3. K-12 Tuition
   You can use up to $10,000 per year, per student, for tuition at K-12 public, private, or religious schools. A game-changer for parents with kids in prep school or private education.

Lifestyle & Supplies That Qualify

• Room & Board Campus housing? Covered. Off-campus apartment? Also covered, but only up to the school’s published cost of on-campus housing.
• Textbooks & Supplies Paper, pens, calculators, and required textbooks make the cut. That $400 biology book? Covered. The designer backpack? Not so much.
• Special Needs Services If a student requires special needs services or mobility equipment, those expenses can be paid through a 529. Even certain transportation costs might qualify, depending on the situation.

Tech That Counts

Mobile devices are increasingly used for banking and other sensitive activities. To secure your devices:

Laptops, Software, Internet If the gear is required for class and used primarily by the student, it qualifies. That includes internet service in many cases. But again, “required” is key. Fortnite doesn’t count as coursework.

Important: Timing Matters

Here’s a common mistake. Pulling money in a different calendar year than when the educational expense occurred. Doing that could trigger taxes and penalties. Always match your withdrawal to the year the bill was paid.

The Bottom Line

Your 529 is a powerful tool but like any tool, it helps to know how to use it. Every state has different rules, and schools may have specific requirements too. Before you hit “withdraw,” double-check with your school and your financial pro.

Still not sure what qualifies? We are here for that. As always, if you have questions, contact us today to talk it through. You’re saving for a reason! Let’s make sure those dollars stretch as far as they can.