A 529 college savings plan is a tax-advantaged account that allows the holder to pay for short term education-related expenses – or save for the more far-off education costs of yourself or a student in your household.
Some savers believe it can only pay for more traditional expenses such as college tuition, fees, or books. But in this time of virtual learning, and the cost burdens that come with it, that’s not all a 529 can pay for.
Equipment Upgrades
Remote learning is becoming more common for students of all ages, and it requires appropriate equipment: computers, printers, internet service, etc.
If you have a learner at home participating in an education program, your 529 may tag such purchases as qualifying expenses worthy of a penalty-free withdrawal!
Graduate School and Apprenticeships
Although 529 plan funds are typically used by parents to pay for their child’s 4-year college expenses, the account funds can also be used for eligible graduate school, trade school, community college, and apprenticeship programs too.
Off-Campus Housing, Private School, And Student Loans
Perhaps the least-known eligible expenses 529 plan funds can cover are private school tuition and fees, off-campus housing, and student loan repayment. If these expenses are already in your monthly budget, the plan’s pre-tax money could be directed to those expenses instead, thereby allowing more of your taxed income to be spent elsewhere!