One of the biggest reasons people start a 529 plan is to support students and families pay for college tuition. Funds accumulated in 529 plans can be used to pay the full amount of your college tuition fees and most subsequent university fees that are required for you to enroll and attend. Other fees that don’t have to do with enrollment or attendance may not be eligible.
In order to do so, the college, university or other eligible post-secondary educational institution you’re enrolling in needs to be considered a qualified institution (eligible for Title IV federal student aid.) If you want to know if you’re college is considered qualified use this link which will allow you to look it up and see.
As we’ve mentioned before, 529 plans are not just for college education tuition. They can be used to pay for your child’s private, public or religious elementary, middle and high school tuition as well. For k-12 tuition, there is an allowance of using up to $10,000 per year, per family.
Some of the Finer Points
- When using for higher education, attendance does not need to be physical, as 529 plans will cover online courses as well.
- Many trade schools are considered to be a qualified expense, just be sure to look it up first to make sure.
- 529 plans can be used to pay for apprenticeship programs as long as it is registered and certified with the Secretary of Labor. You can use this link to check.