![]() While joining a fraternity or sorority can be a beneficial part of a student’s college experience, dues as a whole are not considered a qualified expense. The funds can be used to buy groceries and other meals, so long as proper documentation of the receipts is maintained. ![]() Additionally, these expenses are generally limited by the institution’s cost of attendance, which can be found on the school’s website or by contacting its finance department.įor off-campus housing costs, the IRS relies on each school to set the maximum dollar amount to allow for a variance in cost of living around the country.įood expenses and meal plans (which fall within the “board” section of room and board) are a frequent use for 529 savings because of the ease of documentation. ![]() Room and board, off-campus housing and food costsĥ29 plans can be used for room and board, off-campus housing and food expenses as long as the student is enrolled at least half-time as defined by the school. Note that this would not include exam fees or materials. However, if a prep course is considered K-12 education, the cost could be considered qualified. Qualified expenses for K-12 education are currently limited to tuition, however – meaning 529 funds can’t be distributed tax-free to cover the cost of computers, homeschooling or other virtual learning tools for K-12 students.Ĭollege entrance exams such as the SAT and ACT are also not considered qualified expenses for 529 plans. In participating states, tuition expenses up to $10,000 per year per beneficiary are considered qualified for an elementary or secondary public, private or religious school.
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