May 23, 2022
Q: I’ve done well on the savings front with long-term 529 investing. Now how do I ensure proper withdrawals?
Answer:
When taking distributions, be sure not to double count the tax credits (American Opportunity Tax Credit and Lifetime Learning Credit).
Make sure you keep the documentation in the event you are audited.
USE FOR QUALIFIED EXPENSES:
Tuition and fees. Room and Board.
Must be enrolled half time.
Off Campus allowed up to school’s billed rate.
Books and Required Supplies.
Computer and Computer Equipment required for student’s education and used primarily by the student.
NOT QUALIFIED:
Cell phone.
Travel or Transportation.
Insurance.
Health Club / Gym Memberships.
For more information, see When and How to Use 529 Funds - on our resource page
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