” If 12 credit hours is considered full-time, the student needs to be taking at least six hours for their expenses to qualify. The student needs to be enrolled “ at least half the full-time academic workload for the course of study the student is pursuing. Utilizing your 529 plan when attending college less than half time will result in a tax penalty. To use 529 funds to pay for qualifying expenses remember the student must be attending college more than half-time. An eligible educational institution includes almost all accredited postsecondary institutions, including some international institutions. It can be a child, a grandchild, a relative, a friend, or even yourself. ” The designated beneficiary is named in the 529 plan. Generally, qualified education expenses are “ expenses required for the enrollment or attendance of the designated beneficiary at an eligible educational institution. In this piece, we’ll focus on paying for postsecondary education.) How do we define “qualified expenses”? (The federal government has approved the use of 529 funds to pay for K-12 school tuition. What exactly are “qualified expenses”? What things can you NOT use your 529 funds for? Why do we care whether they are “qualified” or not?īecause parents will face a 10% tax penalty for funds withdrawn from a 529 plan that are not used for approved expenses. Parents must understand what expenses can be paid tax free from their 529 plan. Now, you get to use it for the first time. If you have a 529 plan, you hopefully have spent a good deal of time investing in it and watching it grow. Gulp! Often parents face this first payment in May of their child’s senior year. Suddenly, you come to a momentous occasion–you have to PAY for college. Up to this point, parents have SAVED for college and SHOPPED for college.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |