What expenses are covered by 529 plan withdrawals?
To avoid adverse tax consequences, withdrawals from 529 plans can only be used to pay for qualified higher education expenses. For the savings plans, qualified expenses include tuition and fees, the cost of books, supplies, and other equipment, and the cost of room and board if the designated beneficiary is at least a half-time student at an eligible educational institution. The prepaid programs typically cover tuition and room and board.
