what can a 529 account be used for

When you start saving for your child’s future, a 529 plan often emerges as a popular choice. These tax-advantaged accounts are specifically designed to help families set money aside for education costs. But you might be wondering exactly what can a 529 account be used for. The answer is more expansive than many people realize, covering a wide range of educational expenses from kindergarten through graduate school.

What Can a 529 Account Be Used For in College?

For students heading to college or university, a 529 plan is incredibly versatile. The funds can be applied to qualified higher education expenses, which is the classic use for these accounts. This includes tuition and mandatory fees at any eligible institution, which encompasses most colleges, universities, and trade schools across the country. Beyond the tuition bill, you can also use the money for required books, supplies, and equipment for classes.

Covering Room and Board

One of the biggest costs of college is often where a student lives and eats. Fortunately, 529 funds can be used for room and board. If the student is enrolled at least half-time, the account can pay for campus housing or off-campus accommodation. The amount you can withdraw for off-campus housing is limited to the school’s official cost of attendance figure for room and board, which is a helpful guideline to follow.

Technology and Special Needs Equipment

In today’s digital learning environment, having the right technology is essential. Your 529 plan can cover the cost of computers, printers, internet access, and even required software used by the student while enrolled. This also extends to special needs equipment that a student with disabilities might require for their enrollment or attendance.

Beyond College: K-12 and Apprenticeships

Thanks to recent changes in the law, 529 plans are no longer just for college. You can now use up to $10,000 per year per beneficiary for tuition at elementary or secondary public, private, or religious schools. Additionally, 529 funds can be used to pay for fees, books, and equipment required for registered apprenticeship programs.

Understanding the full scope of eligible expenses can help you maximize your savings and reduce the need for student loans. By planning ahead, you can confidently use your 529 account to build a strong financial foundation for your child’s entire educational journey.