What can I pay for with a 529 plan?


Money saved in a 529 plan can be used, tax-free, to cover various education-related expenses.

Check out this U.S. New & World Report article for more details on what qualified expenses you can pay for with a 529 plan:

U.S. New & World Report - Qualified Expenses You Can Pay for With a 529 Plan 

Note that if you withdraw money from your 529 plan to pay for something that is not considered a qualified expense, any part of the withdrawal that is made up of earnings on contributions will be taxed as ordinary income and could incur a 10% federal penalty. However, the penalty may be waived under certain circumstances, such as if the beneficiary receives a scholarship, veteran's educational assistance, or other nontaxable education payment that is not a gift or inheritance, or the disability or death of the beneficiary.

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