What is considered a qualified education expense for 529 College Savings Plans?
For 529 College Savings Plans, qualified education expenses include tuition, fees, room, board, books, supplies, and equipment. As long as money is taken from the 529 College Savings Plan to pay for those expenses, no federal income tax will be owed. 6 Who is eligible to participate in 529 College Savings Plans? It depends on the rules of the state, but generally 529 College Savings Plans allow anyone to set up an account for a beneficiary regardless of the beneficiary’s age. Unlike 529 College Savings Plans, Prepaid Tuition Plans tend to have stricter rules with age limits and time requirements.7 Who is a designated beneficiary for a 529 College Savings Plan? The beneficiary of the 529 College Savings Plan is the future college student.8 What type of colleges will be considered eligible for 529 purposes? For 529 College Savings Plans, generally any college, university, vocational school, or other postsecondary educational institution that participates in Department of Education studen
