Can rent be considered a qualified 529 withdrawal?

Question

Where can I find info on what can be considered a qualified withdrawal from a college savings account?

Answer 1

The following link has all the information you need about Section 529 rules

Answer 2

Cost of room and board are qualified expenses that can be taken from a 529 plan. If the student is not living on campus, the expenses must be comparable to the expenses charged by the school. Keep good records.

If you are the owner of the 529 plan for the student, I would pay the rent directly from the 529 and not have it go through the student's hands, so that you can prove those expenses went for housing.

Answer 3

Who do you have your 529 with? Normally it's a qualified withdrawal only if it is used for school (books, supplies, etc). I would call your 529 company and just run it by them before you take the money out and find out it wasn't qualified.

Answer 4

Unless I have missed some change, I disagree that qualified 529 distributions can only be used if the student resides in a dormitory.

Section 529
........
(3) Qualified higher education expenses
.....
(B) Room and board included for students who are at least
half-time
(i) In general
In the case of an individual who is an eligible student (as defined in section 25A(b)(3)) for any academic period, such term shall also include reasonable costs for such period (as determined under the qualified tuition program) incurred by the designated beneficiary for room and board while attending such institution. For purposes of subsection (b)(6), a designated beneficiary shall be treated as meeting the requirements of this clause.
(ii) Limitation
The amount treated as qualified higher education expenses by reason of clause (i) shall not exceed -
(I) the allowance (applicable to the student) for room and board included in the cost of attendance (as defined in section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll), as in effect on the date of the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001) as determined by the eligible educational institution for such period, or
(II) if greater, the actual invoice amount the student residing in housing owned or operated by the eligible educational institution is charged by such institution for room and board costs for such period.

Answer 5

i don't think it does unless you have the account set up that way. You need to call the bank you have the savings account and talk to them

Answer 6

Only for a dormitory paid directly to the school and it depends on the state your plan is in.

Answer 7

I know, right! I figure, the less I know about somebody the better off I'll be.