Qualified Higher Education Expenses
Undergraduate and graduate tuition, fees, books, supplies, and equipment required for a Beneficiary’s enrollment or attendance at an Eligible Educational Institution. The term includes computers and peripherals, software (except for non-educational sports, games, or hobby software), and internet service if used primarily by the Beneficiary while enrolled at an Eligible Educational Institution. Expenses for special needs services incurred in connection with enrollment or attendance at an Eligible Educational Institution are also included in the definition. The term also includes reasonable room and board for beneficiaries who are enrolled at least half-time at an Eligible Educational Institution.
Qualifying expenses also include fees, books, supplies, and equipment necessary to participate in a registered apprenticeship program, and up to $10,000 (lifetime per student) can be used to repay student loans for the Beneficiary or the Beneficiary’s sibling. Additionally, 529 Plans may be used for K-12 tuition for private, public, or religious school (up to $10,000 per year per Beneficiary).
The tax consequences of using 529 Plans for elementary or secondary education tuition expenses will vary depending on state law and may include recapture of tax deductions received from the original state as well as penalties. You should consider consulting with a tax or legal advisor to determine any such consequences.
A distribution from an Account that is used to pay for Qualified Higher Education Expenses for the Beneficiary at an Eligible Educational Institution. These withdrawals are tax free when used to cover expenses such as tuition, room and board, books, supplies, and other equipment intended for college use.
Investment vehicles featuring the flexibility to choose from among several investment options that may align with your tolerance for risk, your time horizon, and other factors.
A transfer of funds from one qualified 529 Plan account to another qualified 529 Plan account. If the transfer is completed within 60 days and is made to an account for the same Beneficiary or a Member of the Family, the rollover may be considered a tax-free transaction. Please see the Plan Description for specific situations. Funds in a qualified 529 plan account may also be rolled over to a qualified ABLE program account tax free before January 1, 2026, provided certain conditions are met.
Section 529 of the Internal Revenue Code specifies the requirements for qualified tuition programs (529 Plans).
Successor Account Owner
A successor account owner becomes the owner of the account in the event of the death of the Account Owner.