![]() ![]() In addition, the student needs to attend college at least part-time for many expenses to be eligible. ![]() You can also ask the school directly if they qualify. At the time of this writing, the list includes over 6,500 schools (with more than 300 of those outside the U.S.), so it’s pretty comprehensive. #529 eligible expenses code#The Department of Education maintains a list of eligible schools-the Federal School Code List. This seems like a no-brainer, right? After all, paying for college tuition is the main point of these accounts.īut to make sure tuition and fees can be covered by withdrawals from a 529, you first need to check if the school is an eligible educational institution. But non-qualified withdrawals are subject to federal income tax and a 10% penalty on the earnings, which you usually want to avoid. As you probably know, 529 accounts (named for the section in the tax code that created them) have a great tax advantage: Earnings are not taxed if they are used for qualified expenses. But how can you make sure that the costs you’re covering are “qualified higher education expenses”? Congratulations to you and them for reaching this milestone!Īlong with this big change, it’s finally time to use that 529 college savings account that you’ve been building up with your own contributions and perhaps money from family and friends. Perhaps they’ll be attending a local school here in Orange County, or even moving out of state. After years of work and headaches, you’ve at last got a student heading to college. ![]()
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