What expenses can be paid out of a 529 plan?

Qualified expenses that 529s cover. A tax-advantaged 529 college savings plan can be used to pay for college, but not all expenses qualify.

  • College tuition and fees.
  • Vocational and trade school tuition and fees.
  • Elementary or secondary school tuition.
  • Student loans.
  • Off-campus housing.
  • Food and meal plans.
  • Books and supplies.

    • Can Ohio 529 be used for rent?

    Here are your options on how to use your Ohio 529 college savings plan with scholarships. If the offered scholarship isn’t a full ride, your 529 plan can help to pay for the rest of the costs like tuition, room & board, mandatory fees, books, supplies, computers and related equipment and services.

    Can Ohio 529 be used for off-campus housing?

    For this and other off-campus housing, withdraw the needed funds from your Ohio 529 account. The money can be directly deposited to your or the beneficiary’s bank account, or Ohio’s 529 Plan can mail a check directly to you or the beneficiary to cover the costs so you can pay the upcoming bill.

    Can you use 529 for car?

    You cannot use a 529 plan to buy or rent a car. Transportation costs, including the costs of purchasing and maintaining a car, are considered non-qualified expenses. Students can save on transportation costs by renting a car, using a rideshare service or riding a bike or electric scooter to class.

    Is transportation a qualified 529 expense?

    Transportation costs are not a qualified 529 plan expense. According to the College Board’s Trends in College Pricing 2020 report, financial aid offices budgeted the following amounts for transportation costs for the 2020-21 school year cost of attendance: Public 4-year college (in-state, living on campus): $1,230.

    Can I reimburse myself from 529?

    Can you reimburse yourself? After putting money in a 529 plan, you can withdraw money to pay for college. You can transfer money to a college directly or make a 529 account reimbursement. As long as you reimburse yourself in the same calendar year as your educational expenses, you can avoid income taxes or penalties.

    Is a computer a qualified 529 expense?

    Computers and related equipment and services are considered qualified expenses if they are used primarily by the beneficiary during any of the years that the beneficiary is enrolled at an eligible educational institution.